We evaluated 27 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.
Charles Schwab Corporation is not suitable for either the Defensive Investor or the Enterprising Investor. The Defensive Investor is concerned by the insufficient earnings growth over the last ten years and the high PEmg and PB ratios, while the Enterprising Investor is concerned by the lack of earnings growth over the last five years.
We looked at 17 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) […]
Charles Schwab Corp does not qualify for either the Defensive Investor or the Enterprising Investor due to insufficient earnings growth over the ten year historical period and the five year historical period, respectively. The company needs to show further growth in the coming years in order to be more attractive as an investment opportunity.