I have access to Quant Reports by MorningStar as part of Research on my Brokers Direct Investing. I'm not going to name the stock in particular because it's a penny stock, I just want to go in general how accurate the Quant Reports are? For this stock the report has the fair value based off of the previous close. It also has the 5 Star Undervalued price and the 1 Star Overvalued Price. For this stock the 5 Star Undervalued price would be a 70% drop from current price (being a penny stock I don't put too much thought into that) but the 1 Star Overvalued price for this stock is why I want to know how accurate these reports are. The 1 Star Overvalued price for this particular stock is a 22.5X from todays close. On a scale of 1 to 10, 1 being low and 10 being high how accurate are the “MornngStar Quant Reports”?
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