10 High-Yield Stocks Undervalued By Levered Free Cash Flows

One way to gauge a company’s market value is by using the ratio levered free cash flows to enterprise value. Companies with high ratios may be undervalued. Levered free cash flow is relevant to shareholders because it is the free cash flow available after paying interest on outstanding debt. Enterprise value is the value of the company from all ownership sources, including shareholders and debtholders. To illustrate this ratio, we ran a screen on stocks paying dividend yields above 4% for those with relatively high ratios of levered free cash flow/enterprise value, possibly indicating that these companies are undervalued. ‪ 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.‬ ‪ We also created a price-weighted index of the stocks mentioned below, and monitored the... Read more