Roper Industries Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned by the high PEmg and PB ratios, while the Enterprising Investor’s only concern is the level of debt relative to the company’s net current assets.
Mosaic Company qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor’s only concern is the short dividend history while the Enterprising Investor has no initial issues as the company passes all of the investor type’s requirements.
Microchip Technology Inc. is suitable for the Enterprising Investor but not for the Defensive Investor. The Defensive Investor is concerned by the insufficient earnings growth over the last ten years as well as the high PEmg and PB ratios.
Juniper Networks Inc. is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings growth or stability over the last ten years, short dividend history, and the high PEmg ratio.
We evaluated 58 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.
I’ve selected the five lowest PEmg (price / normalized earnings) companies reviewed by ModernGraham. Each company has been determined to be suitable for the Enterprising Investor and undervalued according to the ModernGraham approach. Here’s a summary of each company’s valuation.
Electronic Arts is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings growth or stability over the last ten years, lack of dividends, and the high PEmg and PB ratios.
I’ve selected the five lowest PEmg (price / normalized earnings) companies reviewed by ModernGraham. Each company has been determined to be undervalued and suitable for the Defensive Investor according to the ModernGraham approach. Here’s a summary of each company’s valuation.
