2. CA Technologies (CA)
CA qualifies for conservative-minded defensive investors, and thus also qualifies for less risk-averse enterprising investors. The defensive investor's only concern is the low current ratio. The enterprising investor will have some slight concerns with CA's level of debt relative to the current assets, but the company is still a buy.
In short, value investors following Benjamin Graham's methods should feel comfortable proceeding with further research into CA Technologies and its competitors.
From a valuation perspective, CA appears to be undervalued after growing its EPSmg (our take on normalized earnings) from $1.06 in 2010 to $1.91 for 2014.This demonstrated level of growth is greater than the market's implied estimate of 3.33% earnings growth and leads our valuation model to return an estimate of intrinsic value that is above the market price.
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