Saturday, May 21, 2011

Top 15 Most Undervalued Tech Stocks by Levered Free Cash vs. Enterprise Value

Kapitall submits:

If you are looking for a more accurate method than market capitalization to determine a company's value, examining the Enterprise Value might be a great start.

For this article, we wanted to find technology companies that looked undervalued when we compared levered Free Cash Flow to market cap value.

To create this list we started with the 200 largest companies by market cap. We then collected data on enterprise value and levered free cash flow, and ultimately identified the top 15 most undervalued tech stocks by the LFCF/EV ratio.

List sorted by LFCF/EV ratio.

1. Tele Norte Leste Participacoes S.A. (TNE): Telecom Services Industry. Enterprise value at $16.13B, vs. TTM levered free cash flow at $3.86B (i.e. LFCF/EV ratio at 23.93%).

2. Nokia Corporation (NOK): Communication Equipment Industry. Enterprise value at $22.10B, vs. TTM levered free cash flow at $4.71B (i.e. LFCF/EV ratio at 21.31%).

3. Telecomunicacoes de Sao Paulo


Complete Story »

K. D. Aubert Sara Spraker Alexis Bledel Kim Kardashian China Chow

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