We evaluated 19 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.
Sandisk is suitable for the Enterprising Investor but not the Defensive Investor. The Defensive Investor is concerned with the short dividend history, the insufficient earnings stability over the last ten years as well as the high PEmg and PB ratios.