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Friday, May 11, 2012
6 Undervalued Small Caps With Minimal Debt
Small-cap stocks tend to offer investors greater growth opportunities than large-cap alternatives, although this comes with its fair share of added risk. Are you looking for small caps? Looking for undervalued stocks? In search of companies that can manage their short-term debt well? Do you prefer companies that can also manage their long-term debt? We ran a screen you might be interested in.The PEG ratio (price/earnings to growth ratio) is a valuation metric for determining the relative trade-off between the price of a stock, the earnings generated per share [EPS], and the company's expected growth. In general, the P/E ratio is higher for a company with a higher growth rate. Thus using just the P/E ratio would make high-growth companies appear overvalued relative to others. It is assumed that by dividing the P/E ratio by the earnings growth rate, the resulting ratio is better for comparing companies with different
... Read the rest at SeekingAlpha.com
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