In a market that seems to have more
downside than up, it's better to start with companies that generate more stable
earnings such as companies in sectors of Consumer Staples, Utilities, and
Healthcare.
Warren Buffett is a
smart guy and some of the professional investors cover his activities. What we
can do is to look at his Holdings and select those with an undervalued
tendency.
Well, it's hard to
predict an over or undervaluation or even fair valuation due to the uncertainty
of the future but we can make prima assumptions in terms of future growth and
compare them with current price ratios.
By doing this, we
can discover some undervalued stocks in Warren Buffett's portfolio.
Procter & Gamble -- Yield: 3.77%
Procter & Gamble (NYSE:PG) employs 110,000 people, generates revenue of $76,279.00 million and has a net income of $8,930.00 million. The current market capitalization stands at $190.63 billion.Procter & Gamble’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $15,979.00 million. The EBITDA margin is 20.95% (the operating margin is 15.46% and the net profit margin 11.71%).
Financials: The total debt represents 23.44% of Procter & Gamble assets and the total debt in relation to the equity amounts to 48.62%. Due to the financial situation, a return on equity of 13.23% was realized by Procter & Gamble.
Twelve trailing months earnings per share reached a value of $3.04. Last fiscal year, Procter & Gamble paid $2.59 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 23.51, the P/S ratio is 2.50 and the P/B ratio is finally 3.11. The dividend yield amounts to 3.77%.
Stock Charts:
Long-Term Stock Price Chart of Procter & Gamble (PG) |
Long-Term Dividend Payment History of Procter & Gamble (PG) |
Long-Term Dividend Yield History of Procter & Gamble (PG) |
Intl. Business Machines -- Yield: 3.62%
Intl. Business Machines (NYSE:IBM) employs 379,592 people, generates revenue of $92,793.00 million and has a net income of $15,752.00 million. The current market capitalization stands at $140.72 billion.Intl. Business Machines’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $25,350.00 million. The EBITDA margin is 27.32% (the operating margin is 21.54% and the net profit margin 16.98%).
Financials: The total debt represents 34.72% of Intl. Business Machines assets and the total debt in relation to the equity amounts to 343.82%. Due to the financial situation, a return on equity of 90.89% was realized by Intl. Business Machines.
Twelve trailing months earnings per share reached a value of $15.01. Last fiscal year, Intl. Business Machines paid $4.25 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 9.62, the P/S ratio is 1.52 and the P/B ratio is finally 11.99. The dividend yield amounts to 3.62%.
Stock Charts:
Long-Term Stock Price Chart of Intl. Business Machines (IBM) |
Long-Term Dividend Payment History of Intl. Business Machines (IBM) |
Long-Term Dividend Yield History of Intl. Business Machines (IBM) |
The Coca-Cola Company -- Yield: 3.41%
The Coca-Cola Company (NYSE:KO) employs 129,200 people, generates revenue of $45,998.00 million and has a net income of $7,124.00 million. The current market capitalization stands at $168.61 billion.The Coca-Cola Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $12,474.00 million. The EBITDA margin is 27.12% (the operating margin is 21.04% and the net profit margin 15.49%).
Financials: The total debt represents 45.36% of The Coca-Cola Company assets and the total debt in relation to the equity amounts to 137.68%. Due to the financial situation, a return on equity of 22.36% was realized by The Coca-Cola Company.
Twelve trailing months earnings per share reached a value of $1.71. Last fiscal year, The Coca-Cola Company paid $1.22 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 22.94, the P/S ratio is 3.67 and the P/B ratio is finally 5.58. The dividend yield amounts to 3.41%.
Stock Charts:
Long-Term Stock Price Chart of The Coca-Cola Company (KO) |
Long-Term Dividend Payment History of The Coca-Cola Company (KO) |
Long-Term Dividend Yield History of The Coca-Cola Company (KO) |
Wal-Mart Stores -- Yield: 3.08%
Wal-Mart Stores (NYSE:WMT) employs 2,200,000 people, generates revenue of $485,651.00 million and has a net income of $16,814.00 million. The current market capitalization stands at $204.23 billion.Wal-Mart Stores’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $36,320.00 million. The EBITDA margin is 7.48% (the operating margin is 5.59% and the net profit margin 3.46%).
Financials: The total debt represents 24.65% of Wal-Mart Stores assets and the total debt in relation to the equity amounts to 61.63%. Due to the financial situation, a return on equity of 20.40% was realized by Wal-Mart Stores.
Twelve trailing months earnings per share reached a value of $4.78. Last fiscal year, Wal-Mart Stores paid $1.92 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.34, the P/S ratio is 0.42 and the P/B ratio is finally 2.53. The dividend yield amounts to 3.08%.
Stock Charts:
Long-Term Stock Price Chart of Wal-Mart Stores (WMT) |
Long-Term Dividend Payment History of Wal-Mart Stores (WMT) |
Long-Term Dividend Yield History of Wal-Mart Stores (WMT) |
Wells Fargo & Co -- Yield: 2.95%
Wells Fargo & Co (NYSE:WFC) employs 265,800 people, generates revenue of $47,552.00 million and has a net income of $23,608.00 million. The current market capitalization stands at $260.67 billion.Wells Fargo & Co’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $39,736.00 million. The EBITDA margin is 47.11% (the operating margin is 40.21% and the net profit margin 27.99%).
Financials: The total debt represents 14.67% of Wells Fargo & Co assets and the total debt in relation to the equity amounts to 134.20%. Due to the financial situation, a return on equity of 13.68% was realized by Wells Fargo & Co.
Twelve trailing months earnings per share reached a value of $4.11. Last fiscal year, Wells Fargo & Co paid $1.35 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 12.31, the P/S ratio is 3.09 and the P/B ratio is finally 1.59. The dividend yield amounts to 2.95%.
Stock Charts:
Long-Term Stock Price Chart of Wells Fargo & Co (WFC) |
Long-Term Dividend Payment History of Wells Fargo & Co (WFC) |
Long-Term Dividend Yield History of Wells Fargo & Co (WFC) |
U.S. Bancorp -- Yield: 2.48%
U.S. Bancorp (NYSE:USB) employs 66,750 people, generates revenue of $12,228.00 million and has a net income of $5,908.00 million. The current market capitalization stands at $72.31 billion.U.S. Bancorp’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $9,484.00 million. The EBITDA margin is 47.57% (the operating margin is 40.10% and the net profit margin 29.63%).
Financials: The total debt represents 15.44% of U.S. Bancorp assets and the total debt in relation to the equity amounts to 142.95%. Due to the financial situation, a return on equity of 14.87% was realized by U.S. Bancorp.
Twelve trailing months earnings per share reached a value of $3.13. Last fiscal year, U.S. Bancorp paid $0.96 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.03, the P/S ratio is 3.63 and the P/B ratio is finally 1.89. The dividend yield amounts to 2.48%.
Stock Charts:
Long-Term Stock Price Chart of U.S. Bancorp (USB) |
Long-Term Dividend Payment History of U.S. Bancorp (USB) |
Long-Term Dividend Yield History of U.S. Bancorp (USB) |
American Express Company -- Yield: 1.53%
American Express Company (NYSE:AXP) employs 54,000 people, generates revenue of $35,895.00 million and has a net income of $5,885.00 million. The current market capitalization stands at $75.73 billion.American Express Company’s earnings before interest, taxes, depreciation and amortization (EBITDA) amounts to $10,003.00 million. The EBITDA margin is 27.87% (the operating margin is 25.05% and the net profit margin 16.40%).
Financials: The total debt represents 66.78% of American Express Company assets and the total debt in relation to the equity amounts to 513.97%. Due to the financial situation, a return on equity of 29.07% was realized by American Express Company.
Twelve trailing months earnings per share reached a value of $5.69. Last fiscal year, American Express Company paid $1.01 in the form of dividends to shareholders.
Market Valuation: Here are the price ratios of the company: The P/E ratio is 13.13, the P/S ratio is 2.11 and the P/B ratio is finally 3.74. The dividend yield amounts to 1.53%.
Stock Charts:
Long-Term Stock Price Chart of American Express Company (AXP) |
Long-Term Dividend Payment History of American Express Company (AXP) |
Long-Term Dividend Yield History of American Express Company (AXP) |