By using the ModernGraham Valuation Model, I've selected the five best valued Dow components reviewed by ModernGraham which are suitable for the Defensive Investor and/or the Enterprising Investor according to the ModernGraham approach. As a result, I've tweaked this screen slightly to include the companies trading closest to their estimated intrinsic value. After all, the market as a whole may be overvalued but the intelligent investor still must seek out opportunities that limit downside risk.

Defensive Investors are defined as investors who are not able or willing to do substantial research into individual investments, and therefore need to select only the companies that present the least amount of risk. Enterprising Investors, on the other hand, are able to do substantial research and can select companies that present a moderate (though still low) amount of risk. Each company suitable for the Defensive Investor is also suitable for Enterprising Investors. Verizon Communications Inc. qualifies for both the Defensive Investor and the Enterprising Investor. The Defensive Investor is only initially concerned with the low current ratio.

The Enterprising Investor has concerns regarding the level of debt relative to the current assets. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis. 4.58 for 2018. This level of demonstrated earnings growth outpaces the market's implied estimate of 1.11% annual earnings growth over the next 7-10 years.

As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value above the price. 2.34 per share, for a yield of 4.8%, putting it among the best dividend paying stocks today. Its PEmg (price over earnings per share - ModernGraham) was 10.71, which was below the industry average of 37.96, which by some methods of valuation makes it one of the most undervalued stocks in its industry. JPMorgan Chase & Co. qualifies for both the Defensive Investor and the Enterprising Investor.

In fact, the company meets all of the requirements of both investor types, a rare accomplishment indicative of the company's strong financial position. The Enterprising Investor has no initial concerns. As a result, all value investors following the ModernGraham approach should feel comfortable proceeding with the analysis. 6.65 for 2018. This level of demonstrated earnings growth supports the market's implied estimate of 4.57% annual earnings growth over the next 7-10 years.

As a result, the ModernGraham valuation model, based on Benjamin Graham's formula, returns an estimate of intrinsic value within a margin of safety relative to the price. Cisco Systems, Inc. is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the poor dividend history, and the high PEmg and PB ratios.

The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis. 2.1 for 2018. This level of demonstrated earnings growth supports the market's implied estimate of 6.2% annual earnings growth over the next 7-10 years. As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value within a margin of safety relative to the price. 1.1 per share, for a yield of 2.5%, putting it among the best dividend paying stocks today.

Its PEmg (price over earnings per share - ModernGraham) was 20.91, which was below the industry average of 38.79, which by some methods of valuation makes it one of the most undervalued stocks in its industry. Nike Inc is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios.

The Enterprising Investor has no initial concerns. As a result, all Enterprising Investors following the ModernGraham approach should feel comfortable proceeding with the analysis. 2.15 for 2018. This level of demonstrated earnings growth does not support the market's implied estimate of 11.57% annual earnings growth over the next 7-10 years.

As a result, the ModernGraham valuation model, based on the Benjamin Graham value investing formula, returns an estimate of intrinsic value below the price. Visa Inc is suitable for the Enterprising Investor but not the more conservative Defensive Investor. The Defensive Investor is concerned with the high PEmg and PB ratios. The Enterprising Investor is only concerned with the level of debt relative to the net current assets.