Starwood Hotels & Resorts Worldwide 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, high PEmg and PB ratios.
Starwood Hotels & Resorts Worldwide Inc. does not qualify for either the Defensive Investor and the Enterprising Investor. The Defensive Investor is concerned with the low current ratio, the insufficient earnings growth over the last ten years, and the high PEmg and PB ratios.
We evaluated 17 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.
Starwood Hotels & Resorts is not suitable for either the Defensive Investor or the Enterprising Investor. In fact, the only things the Defensive Investor likes about the company are the fact that it has a market cap greater than $2 billion and the fact that its dividend record.