Is Morningstar, Inc. overvalued or undervalued?

As of 9 September 2025, the valuation grade for Morningstar, Inc. has moved from very expensive to expensive, indicating a slight improvement in its perceived value. The company is currently considered overvalued based on its P/E ratio of 42, which is significantly higher than the peer average of 33.14 for similar companies. Additionally, the EV to EBITDA ratio stands at 26.18, again above the peer average of 21.24, and the PEG ratio of 0.56 suggests that the stock may not be justified at its current price given its growth prospects.
In comparison to its peers, Franklin Resources, Inc. is rated very attractive with a P/E of 14.94, highlighting a stark contrast in valuation metrics. Morningstar's recent stock performance has been underwhelming, with a year-to-date return of -30.60%, compared to a 12.22% return for the S&P 500, which reinforces the notion that the stock is overvalued at present.