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Valuation Of The Dow Jones Industrial Average – July 2015 Update

Valuation Of The Dow Jones Industrial Average – July 2015 Update by Benjamin Clark, ModernGraham

As one of the features of Premium Membership, I take a look each month at the Dow Jones Industrial Average, listing out each individual component in an easy to read table, and calculate a value for the index that is based on the ModernGraham valuation model’s estimates for intrinsic values for each component.  This “Glance at the Dow” is also included in a regular post on the blog once each month, and will continue to be included in each month’s ModernGraham Stocks & Screens, which is released to premium subscribers every month.  I hope this is useful to all my subscribers, as another tool for evaluating Mr. Market’s current prices.

Readers may find a screen of some of the best components of the Dow by reviewing 5 Undervalued Dow Companies to Research, and may find it useful to review the history of this screen.

Dow Jones Industrial Average

^DJI data by YCharts

At the time of writing, the Dow Jones Industrial Average (DJIA) was at 17,919.29. The ModernGraham Valuation of the DJIA was 19,834.16. As a result, the DJIA was trading at 90.35% of its estimated value. This figure is within the ModernGraham margin of error, and therefore it appears the DJIA is presently fairly valued.  To see the individual valuation articles, please click on the company name in the table below.

TickerName with LinkInvestor TypeLatest Valuation DateMG ValueRecent PricePrice as a percent of ValuePEmg RatioDividend Yield
AXPAmerican Express CompanyE4/30/2015$132.71$78.9459.48%15.821.47%
AAPLApple Inc.S12/12/2014$215.50$130.7560.67%23.351.59%
BABoeing CoE5/17/2015$195.80$145.1474.13%20.942.51%
CATCaterpillar Inc.D4/21/2015$176.91$82.2146.47%12.753.75%
CSCOCisco Systems, Inc.D5/4/2015$32.94$27.8484.52%16.773.02%
CVXChevron CorporationS6/2/2015$33.69$93.90278.72%10.884.56%
DDE I Du Pont De Nemours And CoE5/7/2015$75.14$59.2878.89%14.783.31%
DISWalt Disney CoS11/19/2014$100.82$119.34118.37%34.891.11%
GEGeneral Electric CompanyS3/2/2015$9.65$26.84278.13%20.183.43%
GSGoldman Sachs Group IncS11/10/2014$71.04$211.66297.94%15.121.23%
HDHome Depot IncS11/10/2014$126.71$113.8089.81%32.062.07%
IBMInternational Business Machines Corp.S11/11/2014$357.65$163.0845.60%11.063.19%
INTCIntel CorporationD5/18/2015$32.91$28.7287.27%13.743.34%
JNJJohnson & JohnsonD6/1/2015$85.77$100.36117.01%19.082.99%
JPMJPMorgan Chase & Co.D6/1/2015$113.90$69.0860.65%13.572.55%
KOThe Coca-Cola CoS3/3/2015$19.68$41.22209.45%22.283.20%
MCDMcDonald’s CorporationS11/11/2014$99.75$97.3297.56%18.753.49%
MMM3M CoE4/27/2015$131.77$155.79118.23%21.672.63%
MRKMerck & Co., Inc.S11/12/2014$8.19$58.68716.48%26.313.07%
MSFTMicrosoft CorporationD5/4/2015$32.40$47.28145.93%19.222.62%
NKENike IncE5/11/2015$74.61$113.00151.45%38.180.99%
PFEPfizer Inc.E6/11/2015$60.91$35.1457.69%17.313.19%
PGProcter & Gamble CoS2/16/2015$31.58$81.67258.61%20.993.24%
TRVTravelers Companies IncD5/15/2015$253.10$104.4641.27%11.872.34%
UNHUnitedHealth Group IncS11/15/2014$136.02$120.9088.88%22.851.65%
UTXUnited Technologies CorporationS11/15/2014$119.90$102.6885.64%16.752.49%
VVisa IncE5/22/2015$75.87$72.0494.95%36.570.67%
VZVerizon Communications Inc.S3/4/2015$37.76$46.96124.36%22.264.68%
WMTWal-Mart Stores, Inc.S11/19/2014$83.92$72.7586.69%15.002.69%
XOMExxon Mobil CorporationS6/4/2015$42.51$81.63192.03%12.643.58%

Disclaimer:  The author held a long position in DIS and HD but did not hold a position in any other company mentioned in this article at the time of publication.

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