The TSX tech stocks on our list have industry-low forward EV/EBITDA multiples
SmallCapPower | February 12, 2018: Today we have identified four TSX tech stocks that may be undervalued. The companies mentioned have an average forward EV/EBITDA of 5.9x, much lower than the industry average of 16.9x. The S&P/TSX Tech index is up 1%, as opposed to the S&P/TSX Composite, which is down 8%.
Celestica Inc. (TSX:CLS) – $12.92
Celestica is a Canada-based tech company that provides a variety of process improvement solutions to the electronics manufacturing segment. Celestica’s services include design and development, engineering services, raw materials sourcing, assembly & testing and supply chain management solutions.
- Market Cap: $1,883.6 Million
- Enterprise Value to Sales: 0.2x
- Forward Enterprise Value to EBITDA FY2018: 4.1x
- 52 Week Total Return: -27.8%
Intertain Group Ltd. (TSX:ITX) – $13.46
Intertain Group is a Canada-based online gaming company that offers bingo and casino games through a variety of separately-operated brands. Intertain is the largest online bingo-led operator in the world.
- Market Cap: $266.5 Million
- Enterprise Value to Sales: 1.6x
- Forward Enterprise Value to EBITDA FY2018: 4.6x
- 52 Week Total Return: 37.3%
Points International Ltd. (TSX:PTS) – $14.11
Points International is a Canada-based online services company that offers a loyalty program platform, allowing the purchase of loyalty rewards such as air miles. Points’ e-commerce platform integrates travel booking options with purchase options across a wide network of partners.
- Market Cap: $208.2 Million
- Enterprise Value to Sales: 0.3x
- Forward Enterprise Value to EBITDA FY2018: 7.3x
- 52 Week Total Return: 34.4%
Mediagrif Interactive Technologies Inc. (TSX:MDF) – $10.34
Mediagrif Interactive Technologies is a Canada-based e-commerce company that owns a number of web-based platforms including Joboom and Intertrade. Mediagrif employs 440 individuals and has offices in Canada, the United States and China.
- Market Cap: $153.5 Million
- Enterprise Value to Sales: 2.2x
- Forward Enterprise Value to EBITDA FY2018: 7.7x
- 52 Week Total Return: -39.5%
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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