In terms of European companies, France’s Renault (RNO ) is the second most undervalued, according to Morningstar estimates. It’s joined on this list Japan’s Nissan (7201 ) and two companies are part of a wider Renault-Nissan-Mitsubishi alliance, which makes almost 8 million vehicles a year. Germany’s Volkswagen (VOW3 ) is another automotive firm to join the 5-star cohort this month. Other EU firms on the wider list include Just Eat Takeaway (JET ), French telecoms firm Orange (ORA ) and Italian aerospace company Leonardo (LDO ).

There are 60 companies worldwide on our 5-star list and Alibaba and Tencent are among the five to also have wide economic moats. These companies have the dual advantage of being signidicantly undervalued but with strong competitive advtanges. The other three are brewer Anheuser-Busch (ABI) and UK...