NEW YORK (TheStreet) -- Out of the multitude of companies, which ones would legendary value investor Benjamin Graham buy today?
We've compiled ten great companies that fit the ModernGraham criteria, based on Benjamin Graham's methods. The companies in this list pass our rigorous requirements and are undervalued by the market. (To find more companies that meet these tests, be sure to check out the ModernGraham Valuation Index, a list of all companies we cover.)
Here's a slideshow of outstanding companies that Benjamin Graham would buy today!
1. Apple (AAPL)Apple is an excellent company for enterprising investors -- research-oriented investors willing to take a bit of risk. The stock only fails one screen: the current ratio requirement. The company does not qualify for the more conservative defensive investor, due to its low current ratio, lack of a sufficiently long dividend record and high price-to-book ratio. Enterprising investors should feel very comfortable proceeding with further research into the company and its competitors, including Microsoft (MSFT) and Google (GOOG) (GOOGL). As for valuation, Apple appears to be significantly undervalued. It has grown its EPSmg (our own take on normalized earnings) from $9.22 to an estimated $37.86 for 2014, a growth rate that far outpaces the market's implied estimate of only 4.14% earnings growth. We return an estimate of intrinsic value that is much higher than the market price. The stock is simply a good deal.