Northern Trust is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned with the insufficient earnings growth over the last ten years and the high PEmg ratio.
Archives for August 2014
Intuitive Surgical does not qualify for the Defensive Investor but does satisfy for the Enterprising Investor. The Defensive Investor has concerns with the lack of dividend payments and the high PEmg and PB ratios, while the Enterprising Investor’s only issue is the lack of dividend payments.
This week on the ModernGraham show, we explore a reader question from last week, which is “what is the PEmg ratio?” We also talk about some of the companies we’ve reviewed this week, so be sure to check out the video today!
Marsh & McLennan is not suitable for the Defensive Investor but does satisfy for the Enterprising Investor. The Defensive Investor has concerns with the low current ratio, instability of earnings over the last ten years, and the high PEmg and PB ratios.
We evaluated 18 different companies this week to determine whether they are suitable for Defensive Investors, those unwilling to do substantial research, or Enterprising Investors, those who are willing to do such research. We also put each company through the ModernGraham valuation model based on Benjamin Graham’s value investing formulas in order to determine an intrinsic value for each. Here’s a summary of the ModernGraham Valuations.