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Browse Valuations by Investor Type

Below are companies that pass the following screens:

Defensive Investor – must pass at least 6 of the following 7 tests:

  1. Adequate Size of Enterprise – market capitalization of at least $2 billion
  2. Sufficiently Strong Financial Condition – current ratio greater than 2
  3. Earnings Stability – positive earnings per share for at least 10 straight years
  4. Dividend Record – has paid a dividend for at least 10 straight years
  5. Earnings Growth – earnings per share has increased by at least 1/3 over the last 10 years using 3 year averages at beginning and end of period
  6. Moderate PEmg ratio – PEmg is less than 20
  7. Moderate Price to Assets – PB ratio is less than 2.5 or PB x PEmg is less than 50

Enterprising Investor – must pass at least 4 of the following 5 tests:

  1. Sufficiently Strong Financial Condition, Part 1 – current ratio greater than 1.5
  2. Sufficiently Strong Financial Condition, Part 2 – Debt to Net Current Assets ratio less than 1.1
  3. Earnings Stability – positive earnings per share for at least 5 years
  4. Dividend Record – currently pays a dividend
  5. Earnings growth – EPSmg greater than 5 years ago

Defensive Investor Companies – each valuation updated approximately every three months

Enterprising Investor Companies – each valuation updated approximately every three months

The following companies are not suitable for the defensive or enterprising investors and are considered to be speculative at this time – each valuation updated annually

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One Response to “Browse Valuations by Investor Type”

  1. 5 Things to Remember as the Market Turns the Corner | ModernGraham.com
    May 28, 2009 at 2:56 pm

    [...] Dividends can make or break a portfolio. For both the defensive and enterprising investors, we think that dividends are an extremely important part of the investment screen. One reason is [...]

    #8400