Glance at the Dow – February 2014
As one of the features in each month’s issue of ModernGraham Stocks & Screens, I take a look at the Dow Jones Industrial Average, listing out each individual component in an easy to read table, and calculate a value for the index that is based on the ModernGraham valuation model’s estimates for intrinsic values for each component. Â Starting with this month, I will now go through this process twice a month. Â “Glance at the Dow” will be included in a regular post on the blog on the second Wednesday of each month, and will continue to be included in each month’s ModernGraham Stocks & Screens, which is released on the fourth Wednesday of every month and includes screens of all the companies reviewed by ModernGraham. Â I hope this is useful to all my subscribers, as another tool for evaluating Mr. Market’s current prices.
Dow Jones Industrial Average data by YCharts
At the time of writing, the Dow Jones Industrial Average (DJIA) was at 15,994.77. The ModernGraham Valuation of the DJIA was 18,377.34. As a result, the DJIA was trading at 87.04% of its estimated value. This figure is within the ModernGraham margin of error, and therefore it appears the DJIA is presently fairly valued. Â To see the individual valuation articles, please click on the company name in the table below.
| Ticker | Company Name | Investor Type | Latest Valuation Date | ModernGraham Valuation | Current Price | Price as a percent of Value | Price/EPSmg |
| AXP | American Express Company | E | 1/23/2014 | $115.45 | $88.58 | 76.73% | 21.93 |
| BA | The Boeing Company | E | 10/29/2013 | $127.00 | $130.16 | 102.49% | 25.83 |
| CAT | Caterpillar Inc. | D | 1/29/2014 | $161.33 | $94.96 | 58.86% | 15.05 |
| CSCO | Cisco Systems, Inc. | D | 2/1/2014 | $31.26 | $22.71 | 72.65% | 13.93 |
| CVX | Chevron Corporation | D | 10/31/2013 | $255.00 | $113.58 | 44.54% | 9.72 |
| DD | E I Du Pont De Nemours And Co | E | 2/6/2014 | $45.79 | $64.29 | 140.40% | 21.36 |
| DIS | The Walt Disney Company | S | 11/19/2013 | $71.18 | $77.79 | 109.29% | 25.84 |
| GE | General Electric Company | D | 11/6/2013 | $3.77 | $25.43 | 674.54% | 19.12 |
| GS | Goldman Sachs Group Inc | S | 11/6/2013 | $23.03 | $164.39 | 713.81% | 11.90 |
| HD | The Home Depot, Inc. | S | 11/6/2013 | $68.76 | $76.70 | 111.55% | 26.72 |
| IBM | International Business Machines Corp. | S | 11/8/2013 | $381.67 | $179.70 | 47.08% | 13.16 |
| INTC | Intel Corporation | D | 11/6/2013 | $76.44 | $24.47 | 32.01% | 12.30 |
| JNJ | Johnson & Johnson | E | 11/8/2013 | $38.67 | $92.97 | 240.42% | 22.03 |
| JPM | JPMorgan Chase & Co. | D | 11/11/2013 | $143.27 | $57.43 | 40.09% | 12.82 |
| KO | The Coca-Cola Company | E | 11/4/2013 | $49.45 | $38.64 | 78.14% | 19.42 |
| MCD | McDonald’s Corporation | S | 11/11/2013 | $142.46 | $95.34 | 66.92% | 18.30 |
| MMM | 3M Co | E | 1/21/2014 | $100.49 | $130.98 | 130.34% | 21.26 |
| MRK | Merck & Co., Inc. | S | 11/12/2013 | $0.00 | $55.70 | N/A | 26.91 |
| MSFT | Microsoft Corporation | D | 2/9/2014 | $49.37 | $37.17 | 75.29% | 15.11 |
| NKE | Nike Inc | E | 2/10/2014 | $61.49 | $73.98 | 120.31% | 28.67 |
| PFE | Pfizer Inc. | E | 11/13/2013 | $16.12 | $31.88 | 197.77% | 23.27 |
| PG | The Procter & Gamble Company | S | 2/11/2014 | $44.92 | $78.84 | 175.51% | 27.96 |
| T | AT&T Inc. | S | 10/28/2013 | $12.00 | $32.95 | 274.58% | 17.53 |
| TRV | Travelers Companies Inc | D | 11/14/2013 | $85.94 | $83.21 | 96.82% | 12.57 |
| UNH | UnitedHealth Group Inc. | D | 11/15/2013 | $140.16 | $70.62 | 50.39% | 14.32 |
| UTX | United Technologies Corporation | S | 11/15/2013 | $89.99 | $112.96 | 125.53% | 19.99 |
| V | Visa Inc | E | 11/18/2013 | $197.20 | $222.33 | 112.74% | 43.42 |
| VZ | Verizon Communications Inc. | D | 11/18/2013 | $99.76 | $47.21 | 47.32% | 14.66 |
| WMT | Wal-Mart Stores, Inc. | S | 11/19/2013 | $101.49 | $74.80 | 73.70% | 15.71 |
| XOM | Exxon Mobil Corporation | D | 11/5/2013 | $128.15 | $90.84 | 70.89% | 11.33 |
Disclaimer: Â The author held a long position in DIS and HD at the time of publication.
