Chevron Corporation passes the initial requirements of both the Defensive Investor and the Enterprising Investor. The Defensive Investor’s only concern is the low current ratio while the Enterprising Investor is willing to overlook concerns because the company passes the more conservative Defensive Investor requirements.
Archives for November 2014
Entergy is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned by the low current ratio and the insufficient level of earnings growth over the last ten years.
Aon does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned by the low current ratio, and the high PEmg and PB ratios.
Edwards Lifesciences Corp is suitable for the Enterprising Investor but not for the Defensive Investor. The Defensive Investor is concerned by the lack of dividends as well as the high PEmg and PB ratios, while the Enterprising Investor is only concerned by the lack of dividend payments.
We evaluated 22 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.