Tag Archives: EV/EBITDA ratio

The EV/EBITDA Ratios of These 5 Canadian Small Caps Suggest They Deserve Investor Attention

Some experts call the EV/EBITDA ratio the “Golden Ratio” and consider it the best metric for finding value. Why? Because over the past 20 years the companies with the lowest 10% EV/EBITDA multiples have returned 2,227% compared to 500% for the S&P 500. Today we have identified 5 Canadian small caps that are trading below 5x EV/EBITDA and have an average ROE of greater than 15% over the past five years and, as such, deserve investor attention as potentially undervalued stocks.

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