For an investor looking for value stocks in the market, the P/E as well as the EV/EBITDA ratios may come in handy. With most of the market currently trading at 15x earnings and 10x EBITDA, the following stocks appear overwhelmingly inexpensive in comparison. While the latter, Enterprise Value over EBITDA (Earnings Before Interest, Tax, Depreciation & Amortization), is a valuation multiple focused on stripping down a company’s earnings to its most comparatively operational form. With most of the market currently trading at 15x earnings and 10x EBITDA, the following stocks appear overwhelmingly inexpensive in comparison.
Nuvo Research Inc. (TSX: NRI) – $4.37
Pharmaceuticals
Nuvo Research Inc. is a specialty pharmaceutical company with a diverse portfolio of topical and immunology products. The Company operates two business units: the Topical Products and Technology (TPT) Group and the Immunology Group. The TPT Group has four commercial products, a pipeline of topical and transdermal proprietary drug delivery (TTDD) products focusing on pain and dermatology and four drug delivery platforms that support the development of patented formulations that deliver actives into or through the skin. The Immunology Group has two commercial products, which include a development program for the treatment of allergic rhinitis and an immune system modulation platform to support treatments for a range of immune system related disorders.
- Market Cap: $47,231,683
- P/E: 1.18x
- EV/EBITDA: 2.05x
Prism Medical Ltd. (TSXV: PM) – $9.50
Medical Equipment, Supplies & Distribution
Prism Medical Ltd. is a Canada-based healthcare company. The Company is a provider of durable medical equipment and services to the mobility disadvantaged, and has two business units that include Prism Medical USA and Prism Medical CA. Prism Medical Ltd. also manufactures fixed ceiling lifts, portable ceiling lifts, floor lifts, slings, shower chairs and other ancillary patient handling products.
- Market Cap: $45,742,871
- P/E: 3.36x
- EV/EBITDA: 2.61x
Bellatrix Exploration Ltd. (TSX: BXE) – $2.99
Oil & Gas Exploration and Production
Bellatrix Exploration Ltd. is a Canada-based company engaged in exploration and production of oil and gas. The Company is focusing on developing its two core resource plays, the Cardium and the Notikewin/Falher intervals. The Cardium play is involved in the accumulation of light oil in the Western Canadian Sedimentary Basin with approximately 20,000 square miles and 1.38 billion barrels produced to date.
- Market Cap: $572,511,371
- P/E: 3.42x
- EV/EBITDA: 3.57x
