Glance at the Dow – May 2014
As one of the features 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.  “Glance at the Dow” is also 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 to premium subscribers on the fourth Wednesday of every month.  I hope this is useful to all my subscribers, as another tool for evaluating Mr. Market’s current prices.
Readers may find a screen of some of the best components of the Dow by reviewing 5 Undervalued Dow Components.
At the time of writing, the Dow Jones Industrial Average (DJIA) was at 16,715.44. The ModernGraham Valuation of the DJIA was 18,528.29. As a result, the DJIA was trading at 90.22% 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 | Investor Type | Latest Valuation Date | ModernGraham Valuation | Current Price | Price as a percent of Value | Price/EPSmg | |
| AXP | American Express Company | E | 4/22/2014 | $140.89 | $89.09 | 63.23% | 19.24 |
| BA | The Boeing Company | E | 2/17/2014 | $133.72 | $133.45 | 99.80% | 26.01 |
| CAT | Caterpillar Inc. | S | 4/29/2014 | $182.55 | $107.15 | 58.70% | 16.41 |
| CSCO | Cisco Systems, Inc. | D | 5/1/2014 | $31.26 | $22.86 | 73.13% | 14.02 |
| CVX | Chevron Corporation | D | 2/25/2014 | $248.34 | $125.85 | 50.68% | 10.87 |
| DD | E I Du Pont De Nemours And Co | E | 5/6/2014 | $57.38 | $67.69 | 117.97% | 19.68 |
| DIS | The Walt Disney Company | S | 11/19/2013 | $71.18 | $82.08 | 115.31% | 27.27 |
| GE | General Electric Company | D | 3/1/2014 | $3.77 | $26.92 | 714.06% | 20.24 |
| GS | Goldman Sachs Group Inc | S | 11/6/2013 | $23.03 | $160.28 | 695.96% | 11.60 |
| HD | The Home Depot, Inc. | S | 11/6/2013 | $68.76 | $77.27 | 112.38% | 26.92 |
| IBM | International Business Machines Corp. | S | 11/8/2013 | $381.67 | $192.19 | 50.36% | 14.07 |
| INTC | Intel Corporation | D | 2/18/2014 | $76.82 | $26.45 | 34.43% | 13.23 |
| JNJ | Johnson & Johnson | E | 2/25/2014 | $39.99 | $101.02 | 252.61% | 23.71 |
| JPM | JPMorgan Chase & Co. | D | 2/23/2014 | $137.57 | $54.62 | 39.70% | 12.39 |
| KO | The Coca-Cola Company | S | 3/2/2014 | $47.57 | $41.11 | 86.42% | 20.97 |
| MCD | McDonald’s Corporation | S | 11/11/2013 | $142.46 | $103.53 | 72.67% | 19.87 |
| MMM | 3M Co | E | 4/20/2014 | $101.21 | $142.43 | 140.73% | 23.08 |
| MRK | Merck & Co., Inc. | S | 11/12/2013 | $0.00 | $55.75 | N/A | 26.93 |
| MSFT | Microsoft Corporation | D | 5/5/2014 | $50.20 | $40.42 | 80.52% | 16.36 |
| NKE | Nike Inc | E | 5/10/2014 | $61.95 | $74.59 | 120.40% | 28.91 |
| PFE | Pfizer Inc. | E | 3/8/2014 | $13.79 | $29.20 | 211.75% | 22.12 |
| PG | The Procter & Gamble Company | S | 2/11/2014 | $44.92 | $81.61 | 181.68% | 28.94 |
| T | AT&T Inc. | S | 10/28/2013 | $12.00 | $36.20 | 301.67% | 19.26 |
| TRV | Travelers Companies Inc | D | 2/14/2014 | $96.30 | $92.91 | 96.48% | 13.58 |
| UNH | UnitedHealth Group Inc. | D | 2/15/2014 | $141.46 | $78.04 | 55.17% | 15.77 |
| UTX | United Technologies Corporation | S | 11/15/2013 | $89.99 | $118.74 | 131.95% | 21.02 |
| V | Visa Inc | E | 2/16/2014 | $251.97 | $212.06 | 84.16% | 32.43 |
| VZ | Verizon Communications Inc. | S | 3/4/2014 | $13.83 | $47.85 | 345.99% | 26.73 |
| WMT | Wal-Mart Stores, Inc. | S | 11/19/2013 | $101.49 | $79.14 | 77.98% | 16.63 |
| XOM | Exxon Mobil Corporation | D | 3/3/2014 | $119.08 | $102.36 | 85.96% | 13.09 |
Disclaimer: Â The author held a long position in DIS and HD at the time of publication.
