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Did the sell-off create some new undervalued tech stocks?

Stocks in this article: CSC CSCO DBD HPQ LXK NTAP VSH WDC

James Dennin, Kapitall: After March-April sell-off we looked for some undervalued tech stocks in case you're bullish on a rebound. 

Yesterday tech stocks regained some of their value, which they've lost in a fairly substantial sell-off over the last month. Today, however, they've started to head back down

Meanwhile, high-dividend stocks and utilities have made gains, which has lead some stability to the markets. 

But technology's performance is a worrying development to some, who worry that it indicates waning confidence in the recovery. 

It's worth asking,  though, whether the sell-off might be a bit of a good thing. Valuations were clearly stretched, and this earnings season presents an opportunity to get stocks trading at closer to fair price. 

If that's the case, then now's the right time to start looking for tech stocks to buy. When market sentiment shifts, it always overcompensates. A tech sell-off will invariably harm certain tech stocks that are doing everything right. 

We screened for undervalued tech stocks by looking at the ratios between levered-free-cash-flow and enterprise-value (LFCF/EV). This means that the company has extra cash on hand, relative to its size. 

Since dividend stocks have been retaining their value better, we also narrowed the screen for companies with a dividend and companies with a market-cap above $2 billion. We were left with 8 names on our list. 

Click on the interactive chart to view dividend yields over time. 

Are these tech plays undervalued or just sitting on too much cash? Use the list below to begin your analysis. 

1. Computer Sciences Corporation ( CSC): Provides information technology (IT) and professional services to governments and commercial enterprises. Market cap at $9.3B, most recent closing price at $63.40.

Levered free cash flow at $1.13B vs. enterprise value at $9.32B (implies a LFCF/EV ratio at 12.12%).  

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