Dr Pepper Snapple Group Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, poor dividend history, and the high PEmg and PB ratios.
Dr Pepper Snapple Group Inc. does not satisfy the requirements of either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability over the last ten years, the poor dividend history, and the high PEmg and PB ratios.
Dr Pepper Snapple Group Inc does not qualify for either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned with the low current ratio, insufficient earnings stability over the last ten years, short dividend history, and the high PEmg and PB ratios.
We evaluated 20 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.
Dr Pepper Snapple Group is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor has numerous concerns and in fact is only satisfied by the size of the company and the earnings growth over the last ten years; the company fails the investor type’s other requirements.