Cookie Consent The Morningstar Star Rating for Stocks is assigned based on an analyst's estimate of a stocks fair value. It is projection/opinion and not a statement of fact. Morningstar assigns star ratings based on an analystâs estimate of a stock's fair value. Four components drive the Star Rating: (1) our assessment of the firmâs economic moat, (2) our estimate of the stockâs fair value, (3) our uncertainty around that fair value estimate and (4) the current market price. This process culminates in a single-point star rating that is updated daily. A 5-star represents a beli...