There are a number of great companies in the market today. By using theÂ ModernGraham Valuation Model, I’ve selected the tenÂ lowest PEmg (price / normalized earnings) companies reviewed by ModernGraham. Each company has been determined to be undervalued and suitable for the Defensive Investor according to theÂ ModernGraham approach.
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.
Kroger Company is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor has concerns with the low current ratio and the high PB ratio while the Enterprising Investor is concerned with the high level of debt relative to the current assets.