Walmart Inc 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 growth over the last ten years, and the high PEmg and PB ratios.
Walmart Inc 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 growth over the last ten years, and the high PEmg and PB ratios.
Wal-Mart Stores, Inc. 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 growth over the last ten years.
We evaluated 24 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. Out of those 24 companies, only 11 were found to be undervalued or fairly valued and suitable for either Defensive or Enterprising Investors.
Wal-Mart Stores Inc. qualifies for both the Enterprising Investor and the more conservative Defensive Investor. The Defensive Investor is only initially concerned with the low current ratio. The Enterprising Investor is satisfied because the company meets the more stringent Defensive Investor requirements.
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.
After reviewing the data, it is clear that conservative value investors may wish to seek other opportunities. The Defensive Investor is concerned with the low current ratio in combination with the high PB ratio, while the Enterprising Investor has concerns with the high level of debt relative to the current assets.
Walmart Stores is a solid company with a strong history of success; however, when measured using ModernGraham’s requirements for the Defensive Investor or the Enterprising Investor, revised and updated from Benjamin Graham’s The Intelligent Investor, the company does not appear to be a solid opportunity at this time.
