5 Value Stocks With Exciting EV-to-EBITDA Ratios to Own Now

Core Viewpoint - The article discusses the advantages and limitations of using the EV-to-EBITDA ratio as a valuation metric compared to the traditional P/E ratio, highlighting its effectiveness in assessing a company's value and earnings potential [2][4][9]. Valuation Metrics - The P/E ratio is widely used for evaluating stock prices but has limitations, particularly in valuing loss-making firms and being susceptible to accounting manipulation [1][7]. - EV-to-EBITDA is considered a more comprehensive valuation metric as it accounts for a company's total value, including debt, and is less prone to manipulation [2][6][7]. Investment Opportunities - Stocks with attractive EV-to-EBITDA ratios include Signet Jewelers Limited (SIG), Navios Maritime Partners L.P. (NMM), Costamare Inc. (CMRE), The ODP Corporation (ODP), and Portland General Electric Company (POR) [3][15][16][17][18][19]. Screening Criteria for Value Stocks - Key parameters for screening value stocks include: - EV-to-EBITDA ratio lower than the industry median [11]. - P/E ratio lower than the industry median [11]. - Price-to-book (P/B) ratio lower than the industry median [11]. - Price-to-sales (P/S) ratio lower than the industry median [12]. - Estimated one-year EPS growth greater than or equal to the industry median [12]. - Average 20-day volume greater than or equal to 100,000 [13]. - Current price greater than or equal to $5 [13]. - Zacks Rank less than or equal to 2 [14]. - Value Score of less than or equal to B [14]. Company Highlights - Signet Jewelers has an expected earnings growth rate of 2.2% for fiscal 2025, with a consensus estimate revised upward by 9.8% [15]. - Navios Maritime Partners has an expected earnings growth rate of 22.1% for 2024, with a consensus estimate revised upward by 8.2% [16]. - Costamare has an expected year-over-year earnings growth rate of 48.8% for 2024, with a consensus estimate revised upward by 12% [17]. - ODP has an expected year-over-year earnings growth rate of 7.7% for 2024, with a consensus estimate revised upward by 5.6% [18]. - Portland General Electric has an expected earnings growth rate of 29.4% for 2024, with a consensus estimate revised upward by 0.7% [19].