user warning: Table './fnndrupaldev/term_node' is marked as crashed and last (automatic?) repair failed query: SELECT t.* FROM term_node r INNER JOIN term_data t ON r.tid = t.tid INNER JOIN vocabulary v ON t.vid = v.vid WHERE r.vid = 424944 ORDER BY v.weight, t.weight, t.name in /var/www/www.fnno.com/htdocs/modules/taxonomy/taxonomy.module on line 617.

Fred's has the Lowest EV/EBITDA Ratio in the General Merchandise Stores Industry (FRED, BIG, TGT)

Published on Fri, 01/18/2013 - 11:21
By Peter Chu

Below are the three companies in the General Merchandise Stores industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Fred's (NASDAQ:FRED) is lowest with an EV/EBITDA ratio of 5.37. Fred's, Inc. operates discount general merchandise stores in the southeastern United States. The Company also markets goods and services through Fred's Super Dollar Stores and Pharmacies and Fred's Xpress Pharmacies. Fred's has traded 45,000 shares thus far today, vs. average volume of 228,000 shares per day. The stock has underperformed the Dow (-0.3% to the Dow's -0.0%) and underperformed the S&P 500 (-0.3% to the S&P's -0.2%) during today's trading.

Big Lots (NYSE:BIG) is next with an EV/EBITDA ratio of 5.54.

Finishing up the bottom three is Target (NYSE:TGT), with an EV/EBITDA ratio of 7.70.

By Peter Chu
pchu@fnno.com

Latest News from FNNO

Shares of XPO Logistics Rise to a New 52...

Shares of XPO Logistics (NYSE:XPO) traded at a new 52-week high today of $39.92. So fa ...

Recent 52-Week High Exceeded in Shares o...

Shares of U.S. Steel (NYSE:X) traded at a new 52-week high today of $46.55. Approximat ...

Shares of VCA Antech Rise to a New 52-We...

Shares of VCA Antech (NASDAQ:WOOF) traded at a new 52-week high today of $42.14. So fa ...

Watch for Continued Gains in Shares of W...

Shares of Waste Management (NYSE:WM) traded at a new 52-week high today of $47.50. App ...

VF Corp: 52-Week High Recently Eclipsed ...

VF Corp (NYSE:VFC) traded today at a new 52-week high of $66.72. This new high was rea ...

Shares of United Therapeutics Have Risen...

United Therapeutics (NASDAQ:UTHR) traded at a new 52-week high today of $130.44. This ...

Union Pacific: The Winning Streak Contin...

Union Pacific (NYSE:UNP) traded at a new 52-week high today of $109.35. Approximately ...

Tuesday Morning Looks to Continue to Tra...

Tuesday Morning (NASDAQ:TUES) traded at a new 52-week high today of $19.52. So far tod ...