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.
Safeway Inc. qualifies for the Enterprising Investor but not for the Defensive Investor. The Defensive Investor is concerned by the low current ratio, insufficient earnings growth or stability over the last ten years, and the high PEmg ratio.