I decided to put together a list of the Dow Jones Industrial Average and see how our valuation formula values each component. I’ve listed the result below. I also ran the test for each component to determine if it would pass our list of guidelines for the defensive and enterprising investors and calculated how the current price compares to the valuation. Please note that by no means do we ever make any recommendations to buy or to sell and take a moment to read our disclaimer while you’re at it.
| Dow Component | Symbol | Defensive | Enterprising | Value | Price |
| 3M | MMM | No | Yes | $137 | $76.51 |
| Alcoa | AA | Yes | Yes | $85 | $36.60 |
| American Express | AXP | No | No | $60 | $41.53 |
| American International Group | AIG | Yes | Yes | $15 | $42.88 |
| AT&T | T | No | Yes | $68 | $35.01 |
| Bank of America | BAC | Yes | Yes | $68 | $36.74 |
| Boeing | BA | No | Yes | $135 | $76.60 |
| Caterpillar | CAT | No | Yes | $172 | $69.84 |
| Chevron Corp | CVX | Yes | Yes | $284 | $85.26 |
| Citigroup | C | Yes | Yes | n/a | $20.91 |
| Coca-Cola | KO | No | Yes | $54 | $58.85 |
| DuPont | DD | No | Yes | $104 | $45 |
| ExxonMobil | XOM | No | Yes | $233 | $82.49 |
| General Electric | GE | No | Yes | $46 | $32.23 |
| General Motors | GM | No | No | n/a | $21.96 |
| Hewlett-Packard | HPQ | No | Yes | $71 | $47.31 |
| Home Depot | HD | Yes | Yes | $61 | $25.88 |
| Intel | INTC | No | Yes | $34 | $20.07 |
| IBM | IBM | No | Yes | $154 | $113.94 |
| Johnson & Johnson | JNJ | No | Yes | $66 | $61.51 |
| JPMorgan Chase | JPM | Yes | Yes | $130 | $37.56 |
| McDonald’s | MCD | No | Yes | $46 | $52.27 |
| Merck | MRK | No | No | n/a | $41.75 |
| Microsoft | MSFT | No | Yes | $35 | $27.87 |
| Pfizer | PFE | Yes | Yes | $47 | $21.35 |
| Proctor & Gamble | PG | No | Yes | $98 | $65.80 |
| United Technologies Corp | UTX | No | Yes | $109 | $67.49 |
| Verizon Communications | VZ | No | Yes | $63 | $35.08 |
| Wal-mart | WMT | No | Yes | $65 | $49.90 |
| Walt Disney | DIS | Yes | Yes | $63 | $30.76 |
You’ll notice that a great deal of these are significantly undervalued currently according to our formula. This is evidence that quantitative studies are only part of the requirements of prudent investing. The intelligent investor must also take into account management styles and determine the likelihood of the market eventually meeting the estimated value.