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.
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.
Find out which of the 20 companies reviewed this week were rated as suitable for Defensive Investors or Enterprising Investors, and which ones also achieved “undervalued” status!
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.
We looked at 16 different companies this week. Â Here’s a summary of the ModernGraham Valuations. Â For more detailed analysis, click on the name of the company. Â To see screens of all of our valuations, be sure to get a copy of this month’s edition ofÂ ModernGraham Stocks and Screens! The Elite (Defensive or Enterprising and Undervalued) […]
General Electric appears suitable for either the Defensive Investor or the Enterprising Investor; however, the lack of earnings growth is a serious concern for either investor type. The Defensive Investor is disappointed in the insufficient earnings growth over the ten year historical period and the Enterprising Investor is frustrated by the lack of growth over even a five year historical period.