5 Great Low P/E Companies To Research This Week

Jan. 27, 2014 10:48 AM ETCOF, CVX, F, INTC, JPM3 Comments
Benjamin Clark profile picture
Benjamin Clark

There are a number of great companies in the market today. By using the ModernGraham Valuation Model, I've selected five of the companies reviewed by ModernGraham that have the lowest PEmg ratio (P/E ratio based on normalized earnings). Each company has been determined to be suitable for the Defensive Investor or the Enterprising Investor according to the ModernGraham approach. Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk.

Investors should keep in mind the 7 Key Tips to Value Investing while proceeding with further research of all of the following companies:

Capital One Financial (COF) - Capital One Financial is a company that stands out from its peers, having survived the financial meltdown without posting a negative earnings year. This company is not suitable for the Defensive Investor, due to not sufficiently growing earnings over the ten year period, but it is suitable for the Enterprising Investor. Capital One appears to have solid earnings stability, a strong dividend history, and is trading at low PEmg and PB ratios. Value investors seeking to follow Benjamin Graham's methods for the Enterprising Investor should feel very comfortable proceeding with further research. The market implied earnings growth rate is 1.33%, which is far below what the company has historically achieved.

Chevron (CVX) - Chevron passes almost all of the tests for both the defensive and enterprising intelligent investors, with the sole exception being that its current ratio is not quite strong enough for the defensive investor. As a result, Chevron deserves more thorough research from

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Benjamin Clark profile picture
Benjamin is one of TipRank's top bloggers.  He is the founder of ModernGraham.com, a value investing website devoted to the study and modernization of the teachings of Benjamin Graham.

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