Below are the three companies in the Coal & Consumable Fuels 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.
L&L Energy (NASDAQ:LLEN) is lowest with an EV/EBITDA ratio of 2.02. L&L Energy Inc. acquires, invests in and operates growing energy entities and coal mines in the People's Republic of China. L&L Energy has traded 12,000 shares thus far today, vs. average volume of 152,000 shares per day. The stock has outperformed the Dow (0.5% to the Dow's -0.0%) and outperformed the S&P 500 (0.5% to the S&P's 0.1%) during today's trading.
Alliance Resource Partners (NASDAQ:ARLP) is next with an EV/EBITDA ratio of 4.96.
Finishing up the bottom three is Cloud Peak Energy (NYSE:CLD), with an EV/EBITDA ratio of 5.29.