Friday, May 25, 2012

9 'Buy' Rated Small Cap Stocks Trading At A Discount


Interested in following smaller companies? Do you prefer investing in stocks that analysts have weighed in on? Looking for undervalued stocks? If so, we ran a screen keeping this idea in mind.The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses "forecasted" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also known as the Equity Multiplier, illustrates how a firm is financing its assets. The lower the number, the more a firm is financing its assets internally through stockholder equity. The higher this metric is the more the firm is relying on debt to finance
... Read the rest at SeekingAlpha.com

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