Below are the five companies in the Computer Hardware industry with the lowest Enterprise Value (EV) to Forward EBITDA ratios.
EV/Forward EBITDA is an important metric used in valuing comparable companies and is based on estimated cash flow.
It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.
Dell (NASDAQ:DELL) has the lowest with EV/Forward EBITDA of 3.77x; Super Micro Computer (NASDAQ:SMCI) is next with EV/Forward EBITDA of 4.04x; and Avid Technology (NASDAQ:AVID) has the next lowest with EV/Forward EBITDA of 4.58x.
NCR (NYSE:NCR) follows with EV/Forward EBITDA of 4.89x and Hewlett-Packard (NYSE:HPQ) rounds out the group with EV/Forward EBITDA of 5.12x.
SmarTrend is bearish on shares of HPQ and our subscribers were alerted to Sell on August 09, 2010 at $43.13.
The stock has fallen 1.4% since the alert was issued.
Source:http://www.mysmartrend.com/news-briefs/news-watch/relatively-low-ev-forward-ebitda-ratio-detected-shares-dell-computer-hardware
