Modern Graham: Undervalued Company of the Week - DG
Read the full article at: http://moderngraham.com/blog/2006/10/undervalued_company_of_the_wee_4.html
Submitted by Geoff on Tue, 2006-10-24 18:03.
(via moderngraham.com)
Modern Graham post discussing Dollar General (DG). "Upon our review, we find Dollar General Corporation to be suitable for the enterprising investor but not the defensive investor following Benjamin Graham’s value investing strategy. The company’s current ratio, failure to increase EPS on a significant level over the last 10 years, and its price to book ratio eliminate it from the defensive investor’s portfolio. With a PE ratio (see Our Methods) of 14.35 and an ROIC of 11.14%, we believe this is an excellent investment opportunity."
