Ten Best Dow Stocks by Book Value

Think the Dow Jones Industrial Average is overpriced? There are actually ten Dow stocks selling close to book value. As a matter of fact, several of these stocks are trading close to their cash per share. Here they are along with their Book Value, the Price Book Ratio, and the Cash Per Share.

Company Name, Symbol, Book Value, Price Book Ratio, Cash Per Share
BANK OF AMERICA (BAC) 22.71 0.72 63.59
THE TRAVELERS (TRV) 47.29 1.01 11.92
JP MORGAN CHASE (JPM) 39.12 1.14 171.66
GEN ELECTRIC (GE) 11.04 1.40 10.72
WALT DISNEY (DIS) 18.84 1.551 1.68
AT&T (T) 16.71 1.55 1.24
KRAFT FOODS (KFT) 16.47 1.66 1.17
CHEVRON (CVX) 43.85 1.75 3.66
PFIZER (PFE) 9.33 1.86 7.35
VERIZON COMMUN. (VZ) 15.02 1.93 0.41

Please note: the cash per share for some of the financials may be misleading due to the accounting treatment of customers' cash.

You can analyze the Dow Jones Industrial Average doing what-ifs by downloading the analyzer at WallStreetNewsNetwork.com.

Disclosure: Author owns DIS, T, PFE.

Comments

[Spin:]

The banks and GE book value is based on what? Assets marked to fantasy? Who's cash are they really holding?

Oct 23 01:25 PM

[noorm:]

Discounts to book sound good, but how can anyone believe book value?

Oct 23 03:44 PM

[bbro:]

With Banks check core pre provision earnings and loan loss reserves
versus non performing assets,net chargeoffs,and delinquency rates.....

Oct 24 04:33 AM

[Shishir Nigam:]

I'd be a little careful picking up banks and other financial companies based on book value. They usually have huge book values just because of the sheer size of their balance sheets.

Also, any liabilities that are parked off-balance sheet by these banks will result in an inflated book value. The ones where this measure has most value is probably with the consumer staples companies like KFT.

For more analysis, check out my blog: youngandinvested.com

Oct 24 12:42 PM

[David Spence:]

VZ is a good price right now they'll be stealing back customers once the droid phone comes out.

Oct 25 07:04 PM