Why Morningstar’s latest earnings and index moves matter for investors

Morningstar (MORN) has just paired stronger second quarter earnings with a completed rebrand of its CRSP Market Indexes, now the Morningstar Market Indexes. Together, these updates give you fresh information on both profitability and business positioning.

For the second quarter to June 30, 2026, Morningstar reported sales of US$663.2 million, net income of US$107.8 million, basic earnings per share from continuing operations of US$2.85 and diluted earnings per share of US$2.83. The company also disclosed first half sales of US$1,308 million and net income of US$214.9 million, with basic and diluted earnings per share from continuing operations of US$5.59 and US$5.55 respectively.

At the same time, Morningstar has completed the rebrand of the CRSP Market Indexes to the Morningstar Market Indexes. These indexes underpin more than US$3 trillion in investor assets and serve as benchmarks for mutual funds, ETFs and index futures contracts, including products from large asset managers such as Vanguard.

Morningstar’s latest earnings update and index rebrand have arrived alongside sharp short term price strength, with a 7 day share price return of 11.56% and a 30 day share price return of 18.89%. That momentum contrasts with a weaker picture over longer horizons, including a year to date share price decline of 8.48% and a 1 year total shareholder return that is down 28.58%, which suggests recent news may be shifting sentiment after a tougher period for holders.

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Morningstar shares have snapped back on the latest results and index news, yet the price is still below some published targets. Has most of the re‑rating already happened or is there meaningful upside left from here?

Price to earnings on Morningstar: is the premium worth it?

Morningstar’s share price of $192.57 sits at a P/E of 17.1x. That is above the estimated fair P/E of 15.4x yet sits at a discount to peers and the wider US market.

The P/E ratio compares Morningstar’s share price with its earnings per share. For an information and data business that depends on recurring customer relationships and intellectual property, earnings power is often a key reference point for investors.

Here, the picture is mixed. Morningstar is described as expensive versus the estimated fair P/E level of 15.4x, which implies the current valuation is ahead of that regression based reference point. At the same time, the stock trades below the US market average P/E of 19.3x, and well below both the peer average of 24.1x and the wider US Capital Markets industry average of 37.2x. Those gaps suggest the market is not assigning Morningstar the same earnings multiple as comparable companies, even with its mix of businesses and earnings profile.

Against that backdrop, the fair ratio level of 15.4x stands out as a reference investors may watch if sentiment or earnings expectations change and the market decides to close some of these gaps either way.

Result: Price to earnings of 17.1x (ABOUT RIGHT)

However, Morningstar’s recent share price rebound contrasts with multi-year total returns that are down sharply, and any earnings setback could challenge the current P/E premium.

Another view on Morningstar’s valuation

The SWS DCF model puts Morningstar’s value at $160.47 a share, which is below the current $192.57 price. That points to the stock trading at a premium on this cash flow view even though the P/E screens as reasonable. Which signal do you treat as more important?

Simply Wall St performs a discounted cash flow (DCF) on every stock in the world every day (check out Morningstar for example). We show the entire calculation in full. You can track the result in your watchlist or portfolio and be alerted when this changes, or use our stock screener to discover 55 high quality undervalued stocks. If you save a screener we even alert you when new companies match - so you never miss a potential opportunity.

Next Steps

With Morningstar showing both concerns and bright spots, this is a moment to look closely at the numbers and sentiment rather than rely on headlines. Move quickly, review the data for yourself, and weigh both sides with the help of 4 key rewards and 2 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.