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Nasdaq hits 13 year high — are there still value plays in tech?

By James Dennin for Kapitall.

The Nasdaq Composite 100 has had a killer week, climbing enough already to erase most of the losses it endured during tech's selloff throughout the early spring. The gauge fell around 8%, but as of this morning it is poised to close at a 13-year high.

However, a lot of the biggest gains haven't come from the kind of growth plays that usually generate the most hype amongst investors. 

Sturdy value stocks like Apple (AAPL) and Cisco (CSCO) have led the way, as many investors purchased shares at what they felt was a discount. Apple is up 19% since late April, although some of that is certainly due to excitement over Apple's prospective Beats deal. 

With that in mind, we decided to look for value stocks in the tech industry to see if there are any other companies that investors might have missed. 

These companies should be fairly large, with large cash reserves, trading relatively cheap multiples. Unlike growth investors, value investors are looking for value that's already there that the market has likely missed. 

To find value plays in tech, we started with a universe of American tech stocks with a market capitalization of $2 billion or higher. We then narrowed that screen for stocks that were undervalued by looking at levered free cash flow to enterprise value (LFCF/EV).

This means that the company has a lot of extra cash on hand relative to its size that it can deploy to grow the business or reward investors with dividends and buybacks. Either way, a high ratio of levered free cash to a company's size can also indicate that the company might be undervalued. 

This screen left us with 7 stocks on our list. Do you think they have room to grow? Use the list below to begin your analysis and let us know what you think in the comments. 

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