Is The Dow Overvalued?

"Indexes may be hitting record highs, but we think the market on the whole is still roughly fairly valued. For all Morningstar videos: http://www.morningstar.com/cover/vide..." (Source: Morningstar, 12/14/2016)

According to Morningstar, Caterpillar (CAT) is the most overvalued stock in the Dow Jones Industrial Average (DJIA), trading at a 42% premium to fair value, and Visa is the most undervalued, trading at a 25% discount to fair value.