We evaluated 21 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.
Citigroup passes the initial requirements of the Enterprising Investor, but not the more conservative Defensive Investor. The Defensive Investor has issues with the company’s inconsistent dividend history, low level of earnings growth over the last ten years and the lack of earnings stability over that time frame.
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.
Citigroup Inc. qualifies for the Enterprising Investor but not the Defensive Investor. The Defensive Investor is concerned by the lack of earnings stability or growth over the last ten years and the inconsistent dividend record, while the company passes all of the Enterprising Investor’s requirements.
We looked at 14 different companies this week.  Here’s a summary of the ModernGraham Valuations.  For more detailed analysis, click on the name of the company.  To see screens of all of our valuations, be sure to get a copy of this month’s edition of ModernGraham Stocks and Screens! The Elite (Defensive or Enterprising and Undervalued) […]
ModernGraham Valuation: Citigroup Inc. (C)
Citigroup Inc. presents a rare situation. The company had a large loss in 2008 due to the financial meltdown, and this loss is still affecting the analysis through the ModernGraham model.