By using the ModernGraham method one can review a company’s historical accomplishments and determine an intrinsic value that can be compared across industries. What follows is a specific look at how General Electric (GE) fares in the ModernGraham valuation model.
Category: Conglomerates
Berkshire Hathaway Annual Valuation – 2014 $BRK-B
Berkshire Hathaway does not qualify for either the Defensive Investor or the Enterprising Investor because it does not pay dividends. The company passes all of the remaining requirements of each investor type.
E.I. Du Pont de Nemours Quarterly Valuation – August 2014 $DD
Du Pont qualifies for the Enterprising Investor but not the Defensive Investor. The Defensive Investor has concerns with the low current ratio, lack of sufficient earnings growth over the last ten years, and the high PB ratio.
3M Company Quarterly Valuation – July 2014 $MMM
3M Company qualifies for the Enterprising Investor but not the Defensive Investor. The Defensive Investor has concerns with the low current ratio, insufficient earnings growth over the last ten years, and the high PEmg and PB ratios while the Enterprising Investor does not have any major initial issues with the company.
Illinois Tool Works Quarterly Valuation – June 2014 $ITW
Illinois Tool Works is suitable for the Enterprising Investor but not the Defensive Investor. The Defensive Investor has concerns with the company’s low current ratio, and high PEmg and PB ratios.
General Electric June 2014 Quarterly Valuation $GE
General Electric is suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor’s only concern is the insufficient earnings growth over the last ten years, but the company passes all of the requirements of the Enterprising Investor.
E I Du Pont de Nemours and Co. (DD) Quarterly Valuation – May 2014
Du Pont is suitable for the Enterprising Investor but not for the Defensive Investor. The Defensive Investor has concerns with the low current ratio, lack of sufficient earnings growth over the last ten years, and the high PB ratio. The company passes all of the requirements of the Enterprising Investor.
3M Company (MMM) Quarterly Valuation – April 2014
3M Company is suitable for Enterprising Investors but not Defensive Investors. The Defensive Investor is concerned with the low current ratio and high PEmg and PB ratios, but the company passes all of the requirements of the Enterprising Investor.