Valuation Of The Dow Jones Industrial Average – August 2015 Update

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.

TickerName with LinkInvestor TypeLatest Valuation DateMG ValueRecent PricePrice as a percent of ValuePEmg RatioDividend Yield
AXPAmerican Express CompanyE7/31/2015$132.71$80.9861.02%16.231.43%
AAPLApple Inc.S12/12/2014$215.50$115.2453.48%20.581.80%
BABoeing CoE5/17/2015$195.80$142.3972.72%20.552.56%
CATCaterpillar Inc.S7/21/2015$82.62$78.9395.53%13.403.90%
CSCOCisco Systems, Inc.D8/6/2015$32.54$27.9085.74%16.813.01%
CVXChevron CorporationS6/2/2015$33.69$86.81257.67%10.064.93%
DDE I Du Pont De Nemours And CoE8/11/2015$54.70$53.2797.39%14.632.85%
DISWalt Disney CoS11/19/2014$100.82$106.96106.09%31.271.23%
GEGeneral Electric CompanyS3/2/2015$9.65$25.84267.77%19.433.56%
GSGoldman Sachs Group IncS11/10/2014$71.04$201.14283.14%14.371.29%
HDHome Depot IncS11/10/2014$126.71$117.7192.90%33.162.00%
IBMInternational Business Machines Corp.S11/11/2014$357.65$156.1143.65%10.593.33%
INTCIntel CorporationD5/18/2015$32.91$29.4689.52%14.103.26%
JNJJohnson & JohnsonD6/1/2015$85.77$98.71115.09%18.773.04%
JPMJPMorgan Chase & Co.D6/1/2015$113.90$67.2359.03%13.212.62%
KOThe Coca-Cola CoS3/3/2015$19.68$41.25209.60%22.303.20%
MCDMcDonald’s CorporationS11/11/2014$99.75$98.3098.55%18.943.46%
MMM3M CoE4/27/2015$131.77$148.52112.71%20.662.76%
MRKMerck & Co., Inc.S11/12/2014$8.19$58.27711.48%26.133.09%
MSFTMicrosoft CorporationE8/6/2015$19.31$46.74242.05%21.642.65%
NKENike IncE8/12/2015$95.34$113.06118.59%32.960.99%
PFEPfizer Inc.E6/11/2015$60.91$35.3558.04%17.413.17%
PGProcter & Gamble CoS2/16/2015$31.58$76.40241.93%19.643.47%
TRVTravelers Companies IncD5/15/2015$253.10$105.4341.66%11.982.31%
UNHUnitedHealth Group IncS11/15/2014$136.02$121.1789.08%22.911.65%
UTXUnited Technologies CorporationS11/15/2014$119.90$98.6982.31%16.102.59%
VVisa IncE5/22/2015$75.87$73.5796.97%37.350.65%
VZVerizon Communications Inc.S3/4/2015$37.76$47.86126.75%22.684.60%
WMTWal-Mart Stores, Inc.S11/19/2014$83.92$72.6186.52%14.972.70%
XOMExxon Mobil CorporationS6/4/2015$42.51$78.81185.39%12.203.71%

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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