3 deep value based watch list candidates: These 3 companies were either increasing cash, reducing debt or buying back shares. The relationship between EV and market became less correlated as the EV was reduced faster than the market price from 2007 to the TTM. This could indicate value creation that was not recognized in the current market price.
But I went further for this post. All 3 ideas ranked high on earnings yield and ROIC. I used EBITDA less the average capital expenditures over several years to the enterprise value for earnings yield. And average ROIC over several years. All 3 stocks had a strong balance sheet will little or no debt.
Please click to view these 3 potential watch list candidates and the additional work to evaluate