Valuation Of The Dow Jones Industrial Average – August 2015 Update by Benjamin Clark, MordernGraham

Each month ModernGraham takes a look at the Dow Jones Industrial Average, listing out each individual component in an easy to read table, and calculates a value for the index that is based on the ModernGraham valuation model’s estimates for intrinsic values for each component.  Over time this figure can be useful for determining whether the market as a whole is undervalued or overvalued.  Readers may find it useful to review the history of this screen to see how the index has moved in relation to its intrinsic value.

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Dow Jones Industrial Average Valuation

^DJI data by YCharts

At the time of writing, the Dow Jones Industrial Average (DJIA) was at 17,402.51. The ModernGraham Valuation of the DJIA was 19,118.97. As a result, the DJIA was trading at 91.02% 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.

Ticker Name with Link Investor Type Latest Valuation Date MG Value Recent Price Price as a percent of Value PEmg Ratio Dividend Yield
AXP American Express Company E 7/31/2015 $132.71 $80.98 61.02% 16.23 1.43%
AAPL Apple Inc. S 12/12/2014 $215.50 $115.24 53.48% 20.58 1.80%
BA Boeing Co E 5/17/2015 $195.80 $142.39 72.72% 20.55 2.56%
CAT Caterpillar Inc. S 7/21/2015 $82.62 $78.93 95.53% 13.40 3.90%
CSCO Cisco Systems, Inc. D 8/6/2015 $32.54 $27.90 85.74% 16.81 3.01%
CVX Chevron Corporation S 6/2/2015 $33.69 $86.81 257.67% 10.06 4.93%
DD E I Du Pont De Nemours And Co E 8/11/2015 $54.70 $53.27 97.39% 14.63 2.85%
DIS Walt Disney Co S 11/19/2014 $100.82 $106.96 106.09% 31.27 1.23%
GE General Electric Company S 3/2/2015 $9.65 $25.84 267.77% 19.43 3.56%
GS Goldman Sachs Group Inc S 11/10/2014 $71.04 $201.14 283.14% 14.37 1.29%
HD Home Depot Inc S 11/10/2014 $126.71 $117.71 92.90% 33.16 2.00%
IBM International Business Machines Corp. S 11/11/2014 $357.65 $156.11 43.65% 10.59 3.33%
INTC Intel Corporation D 5/18/2015 $32.91 $29.46 89.52% 14.10 3.26%
JNJ Johnson & Johnson D 6/1/2015 $85.77 $98.71 115.09% 18.77 3.04%
JPM JPMorgan Chase & Co. D 6/1/2015 $113.90 $67.23 59.03% 13.21 2.62%
KO The Coca-Cola Co S 3/3/2015 $19.68 $41.25 209.60% 22.30 3.20%
MCD McDonald’s Corporation S 11/11/2014 $99.75 $98.30 98.55% 18.94 3.46%
MMM 3M Co E 4/27/2015 $131.77 $148.52 112.71% 20.66 2.76%
MRK Merck & Co., Inc. S 11/12/2014 $8.19 $58.27 711.48% 26.13 3.09%
MSFT Microsoft Corporation E 8/6/2015 $19.31 $46.74 242.05% 21.64 2.65%
NKE Nike Inc E 8/12/2015 $95.34 $113.06 118.59% 32.96 0.99%
PFE Pfizer Inc. E 6/11/2015 $60.91 $35.35 58.04% 17.41 3.17%
PG Procter & Gamble Co S 2/16/2015 $31.58 $76.40 241.93% 19.64 3.47%
TRV Travelers Companies Inc D 5/15/2015 $253.10 $105.43 41.66% 11.98 2.31%
UNH UnitedHealth Group Inc S 11/15/2014 $136.02 $121.17 89.08% 22.91 1.65%
UTX United Technologies Corporation S 11/15/2014 $119.90 $98.69 82.31% 16.10 2.59%
V Visa Inc E 5/22/2015 $75.87 $73.57 96.97% 37.35 0.65%
VZ Verizon Communications Inc. S 3/4/2015 $37.76 $47.86 126.75% 22.68 4.60%
WMT Wal-Mart Stores, Inc. S 11/19/2014 $83.92 $72.61 86.52% 14.97 2.70%
XOM Exxon Mobil Corporation S 6/4/2015 $42.51 $78.81 185.39% 12.20 3.71%

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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