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With the prospect of the debt crisis throwing the market into a downward spiral, we have decided to look at major companies from each industry and how they have behaved since the end of 2007 on both company metrics as well as price performance to see what companies have become overvalued and/or undervalued. We were surprised by the results.

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This graph illustrates that IBM (NYSE:IBM), Wal-Mart (NYSE:WMT), Coca Cola (NYSE:KO) and Oracle (NYSE:ORCL) have shown strength since 2007, all experiencing increases in prices since the end of 2007.

Why have some of these companies seen great increases, while others show significant losses?

% Changes in Key Values

Ticker
Revenue Increase
Operating Income
Net Income
EPS
P/E
Price

Exxon Mobil (NYSE:XOM)

0.60%

-42.27%

-14.28%

0.47%

-11.49%

-11.08%

Microsoft (NASDAQ:MSFT)

34.22%

45.32%

54.95%

53.33%

-49.93%

-23.23%

IBM (IBM)

5.85%

42.91%

47.55%

10.36%

52.02%

67.76%

GE (NYSE:GE)

)-11.74%

-64.35%

-40.87%

-50.00%

-2.29%

-51.15%

Wal-Mart (WMT)

22.25%

25.39%

46.11%

5.43%

6.26%

12.03%

Johnson & Johnson (NYSE:JNJ)

1.69%

19.76%

16.15%

45.45%

-32.77%

-2.20%

AT&T (NYSE:T)

5.10%

-4.87%

74.20%

17.65%

-38.72%

-27.91%

JP Morgan (NYSE:JPM)

40.45%

N/A

27.56%

47.67%

-36.91%

-6.83%

Coca Cola (KO)

32.07%

17.83%

102.22%

101.72%

-44.51%

11.93%

Oracle (ORCL)

97.94%

101.42%

99.98%

102.70%

-32.90%

36.01%

What is interesting is that while IBM, WMT, KO and ORCL have seen the largest price increases, they have not seen the best improvements in company metrics. ORCL, JPM and MSFT have had the largest increase in revenue while ORCL, MSFT and IBM have had the largest operating income increase. ORCL, KO and MSFT have done the best in EPS. MSFT, KO and ORCL have had the largest decrease in P/E.

With those metrics in place, we would believe that ORCL and MSFT would most likely have seen the best improvements from the end of 2007 until now, but they have not. We have Buy ratings on ORCL and MSFT, and we see both companies as very cheap at these levels.

We also can take away from these metrics is that prices have not followed the growth levels over 2007 for the TTM. The market appears still not convinced by the company individual performances and the macro situation still is discounting companies significantly.

So, while it all appears bad out there ... these companies are better off than even 2007. Shocked? The valuations on this market are cheap.

The largest loser in this study has been GE, who has seen decreases in each category over the past four years. This may be one to avoid, but the large caps have a lot of upside.

Disclosure: I am long ORCL.

Source: Market Trends Suggest Historical Valuations Currently Cheap