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FOREIGN VALUE: Philips Electronics
Ticker: PHG
Market cap (billions): $39.4
P/E ratio*: 8
Earnings growth**: 14%
Dividend yield: 2.4%

Philips Electronics has streamlined its divisions to focus on its most lucrative products: lighting, medical devices and consumer electronics. That should improve the Dutch manufacturer's margins.

The world's largest lighting company and the third-largest consumer-electronics maker generates only about one-third of its business from the United States. It has a strong presence in emerging markets. Philips, which is actively buying back stock, has increased its dividend every year for the past five years.

NEXT: FOREIGN VALUE: Sanofi-Aventis
Last updated June 20 2008: 2:35 PM ET
Criteria include low price/earnings and price/book ratios relative to competitors, rising profit margins, and accelerating earnings growth.
*Based on previous 12-months' reported earnings. **Wall Street estimates for the next three years.
Source: Zacks Investment Research
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