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When Screening for Negative Enterprise Value, Manageable Debt

Mar 11, 2009 - 11:32 AM EDT

Jae Jun submits:

I was reading a post by Magic Diligence on Why and How to Use Enterprise Value in Evaluating Stocks and realized I could find companies trading at less than cash per share quite quickly. By searching for companies with negative enterprise values, the screen would also ensure that the companies have manageable debt as well as be a business that is non-capital intensive e.g. airlines and oil industry. Add in a couple of extra criteria such as an enterprise value/revenue < than 1 and a ROE of > 0 to try and filter out unduly cheap companies.

You can run the screen yourself at Yahoo.

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Source: Seeking Alpha (Mar 11, 2009 - 11:32 AM EDT)