Murphy Oil Corporation 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 or growth over the last ten years, and the high PEmg and PB ratios.
There are a number of great companies in the market today, but there are also a number of companies that are vastly overvalued by the market. By using the ModernGraham Valuation Model, I’ve selected the ten most overvalued companies of the S&P 500 recently reviewed by ModernGraham.
Murphy Oil Corporation 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 or growth over the last ten years, and the high PEmg and PB ratios.
Murphy Oil Corp does not qualify for either the Enterprising Investor or the more conservative Defensive Investor. The Defensive Investor is concerned by the low current ratio, insufficient earnings growth or stability over the last ten years, and high PEmg and PB ratios.
We evaluated 26 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.
Murphy Oil Corporation does not qualify for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned by the low current ratio and the level of earnings growth over the last ten years, while the Enterprising Investor is concerned by the high level of debt relative to the current assets along with the lack of earnings growth over the last five years.