Current Best Values: Enterprise Value to EBITDA Ratio

Given that we recently backtested the highly effective Enterprise Value to EBITDA ratio that was presented in Quantitative Strategies for Achieving Alpha, I thought folks might be interested in seeing the current results for this screen. Here are the top 1% stocks ranked on EV/EBITDA:

  • American Equity Investment Life (AEL)
  • National Western Life Insurance (NWLI)
  • Career Education Corp. (CECO)
  • First American Financial Corp (FAF)
  • Unisys Corporation (UIS)
  • The Hanover Insurance Group, Inc. (THG)
  • State Auto Financial (STFC)
  • Veeco Instruments Inc. (VECO)
  • Hartford Financial Services (HIG)
  • Power-One, Inc. (PWER)
  • General Motors Company (GM)
  • Visteon Corporation (VC)
  • CIGNA Corporation (CI)
  • Assurant, Inc. (AIZ)
  • Vishay Intertechnology (VSH)
  • American National Insurance Company (ANAT)
  • Lincoln National Corporation (LNC)
  • Meadowbrook Insurance Group, Inc. (MIG)
  • WellCare Health Plans, Inc. (WCG)
  • Principal Financial Group, Inc. (PFG)
  • OmniVision Technologies, Inc. (OVTI)

Data: StockScreen123

It will be interested to check back on these stocks after a few months. Do any of the names above look interesting to you? Please leave your responses in the comments section below.

The above list of low EV/EBITDA stocks should only be used as a starting point for further research. Always remember, past performance does not guarantee future results.

Disclaimer: At the time this post was published, I did not own shares in any of the companies mentioned.

6 thoughts on “Current Best Values: Enterprise Value to EBITDA Ratio

  • January 17, 2012 at 10:50 am
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    HIG, PWER

  • January 18, 2012 at 1:44 am
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    Interesting list. A lot of insurance companies.

  • January 18, 2012 at 11:40 am
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    Kevin – HIG and PWER do look interesting? Have you looked into them further?

    Carl – I too noticed that the list has quite a few insurance companies on the list. It begs the question of whether or not insurance company stocks are actually trading below their intrinsic value. I’m not too good at valuing insurance companies, so maybe someone else can chime in on this question.

  • January 19, 2012 at 6:45 pm
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    Note that Gray and Vogel eliminated “…all REITS, ADRS, closed-end funds, utilities, and financial firms.” (See paper you linked to in a prior post.) It could be that insurance companies weren’t in their study.

  • June 8, 2012 at 8:14 pm
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    Gray and Vogel stripped out financial and utility stocks for their study, so don’t rely on these conclusions for those stocks (TEV/EBITDA doesn’t make sense for financial stocks anyway).

  • December 10, 2013 at 12:17 pm
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    I am looking for screeners that let me use EV/EBITDA or EBITDA/EV and rank by %. Where did you do your screening for the 1%?

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