11 Rallying Dividend Stocks Undervalued By Levered Free Cash Flow

In the never-ending search for potentially undervalued stocks, one indicator is the ratio levered free cash flow/enterprise value. Companies with higher ratios appear more undervalued relative to their levered free cash flows. Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm’s value from all ownership sources: market cap, outstanding debt, and preferred shares. From this value we subtract cash holdings because, in the event of a takeover, that cash would be used towards the takeover price. We ran a screen on dividend stocks rallying above their 20-day, 50-day, and 200-day moving averages for those with the highest ratios of levered free cash flow/enterprise value. ‪ Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.‬ ‪... Read more