This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

7 Undervalued European Stocks To Diversify Your Portfolio During Debt Talks

We ran a screen to find undervalued European stocks trading on US exchanges by looking at the levered-free cash flow to enterprise value ratio (LFCF/EV).

The LFCF/EV ratio is essentially a ratio of the cash a company has on hand to an alternative measure of its size – the enterprise value. Enterprise value is similar to market capitalization, except it also takes into account a company's debt and liabilities.

Levered-free cash flow is the amount of money a business has on hand to pay dividends to grow the company. When this ratio is high, in this case above 10%, it means that a company is liquid relative to its size. Which means the stock might be undervalued. 

We were left with seven undervalued stocks on our list.

Click on the interactive chart below to see data over time. 

Do you see investment opportunities in European-based stocks? Use the list below as a starting point for your own analysis. 

1. ACE Limited ( ACE): Provides a range of insurance and reinsurance products to insureds worldwide. Market cap at $32.23B, most recent closing price at $94.50.

Levered free cash flow at $3.96B vs. enterprise value at $36.66B (implies a LFCF/EV ratio at 10.8%).  
 

 

2. Etablissements Delhaize Freres et Cie Le Lion S.A. ( DEG): Operates food supermarkets in North America, Europe, and southeast Asia. Market cap at $6.06B, most recent closing price at $60.0.

Levered free cash flow at $978.31M vs. enterprise value at $9.00B (implies a LFCF/EV ratio at 10.87%).
 

 

3. Eni SpA ( E): Engages in the exploration, production, transportation, transformation, and marketing of oil and natural gas. Market cap at $86.44B, most recent closing price at $47.72.

Levered free cash flow at $20.92B vs. enterprise value at $105.01B (implies a LFCF/EV ratio at 19.92%).
 

 

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 17,826.30 -279.47 -1.54%
S&P 500 2,081.18 -23.81 -1.13%
NASDAQ 4,931.8150 -75.9760 -1.52%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs