• On September 10, 2025, Morningstar, Inc. introduced the Morningstar PitchBook US Modern Market 100 Index, the first benchmark to blend the largest US-listed public companies with prominent late-stage venture-backed private firms in a single index.
• This index uniquely provides investors with a unified view of both public and private equity performance, reflecting recent trends where many innovative companies remain private for longer periods.
• We'll examine how the integration of private equity leaders into a single investable index could influence Morningstar's investment narrative.

Find companies with promising cash flow potential yet trading below their fair value.

What Is Morningstar's Investment Narrative?

For shareholders in Morningstar, the big picture centers on believing that demand for transparent data and innovative indexing solutions will keep rising as public and private market boundaries blur. The launch of the Modern Market 100 Index marks an important step, yet its near-term impact on Morningstar’s main earnings drivers may not be dramatic at first. It reinforces the company’s position as a product innovator, potentially enhancing its value proposition long-term and supporting its efforts to capture shifts in investor behavior. However, short-term catalysts such as steady revenue growth, buybacks, and ongoing product launches are likely to remain more influential for the business in the coming quarters. A key risk now is whether new indexes like the Modern Market 100 can attract meaningful usage and assets given competitive pressures and market inertia, which may influence investor sentiment as the company adapts its strategy.

But there is a risk in how quickly new products gain traction in a competitive market. Morningstar's share price has been on the slide but might be dropping deeper into value territory. Find out whether it's a bargain at this price.

Exploring Other Perspectives

Fair value estimates from four Simply Wall St Community contributors span from US$100 to a very large US$595, reflecting both cautious and optimistic outlooks. While opinions differ widely, as seen in this spread, competition and product adoption are important themes that could reshape Morningstar’s performance in the months ahead. Consider reviewing these perspectives for a fuller view on potential opportunities and challenges.

Explore 4 other fair value estimates on Morningstar - why the stock might be worth less than half the current price!

Build Your Own Morningstar Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Morningstar research is our analysis highlighting 4 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Morningstar research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Morningstar's overall financial health at a glance.

Ready For A Different Approach?

Early movers are already taking notice. See the stocks they're targeting before they've flown the coop:

• The end of cancer? These 29 emerging AI stocks are developing tech that will allow early identification of life changing diseases like cancer and Alzheimer's.
• These 8 companies survived and thrived after COVID and have the right ingredients to survive Trump's tariffs. Discover why before your portfolio feels the trade war pinch.
• AI is about to change healthcare. These 31 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10b in market cap - there's still time to get in early.

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.