4 TSX Tech Stocks Trading at a Discount

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
Semiconductors

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
Online Services

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
Online Services

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
Online Services

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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