The Uncertainty Rating is meant to give investors an idea of how tightly we feel we can bound our fair value estimate for any given company. To generate the Morningstar Uncertainty Rating, analysts consider factors such as sales predictability, operating leverage, financial leverage, and a firm’s exposure to contingent events. Based on these factors, analysts classify the stock into one of several uncertainty levels: Low, Medium, High, or Extreme. The greater the level of uncertainty, the greater the discount to fair value required before a stock can earn 5 stars, and the greater the premium to fair value before a stock earns a 1-star rating.