Medtronic qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor’s only initial concern is the high PB ratio while the company satisfies all of the Enterprising Investor’s requirements. As a result, value investors following the ModernGraham approach based on Benjamin Graham’s methods should feel comfortable proceeding with further research into the company and comparing it to other opportunities through a review of ModernGraham’s valuation of Johnson & JohnsonÂ (JNJ). Â As for a valuation, the company appears to be fairly valued after growing its EPSmg (normalized earnings) from $2.50 in 2011 to an estimated $3.65 for 2015. This level of demonstrated growth supports the market’s implied estimate of 4.74% earnings growth and leads the ModernGraham valuation model, based on Benjamin Graham’s formula, to return an estimate of intrinsic value within a margin of safety relative to the price.