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Lowest EV/EBITDA Ratio in the Research and Consulting Services Industry Detected for VSE (VSEC, ICFI, CRAI)

Published on Fri, 01/18/2013 - 11:26
By Mallory Stone

Below are the three companies in the Research and Consulting Services 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.

VSE (NASDAQ:VSEC) is lowest with an EV/EBITDA ratio of 4.36. VSE Corporation provides diversified services and products to the engineering, energy, environment, health care, information technology, and defense services markets. The Company's principal customers include agencies of the United States government and other prime contractors. VSE provides services and products from locations across the United States and around the world. VSE has traded 4,000 shares thus far today, vs. average volume of 14,000 shares per day. The stock has underperformed the Dow (-0.5% to the Dow's -0.1%) and underperformed the S&P 500 (-0.5% to the S&P's -0.2%) during today's trading.

Following is ICF International (NASDAQ:ICFI) with an EV/EBITDA ratio of 6.35.

Finishing up the bottom three is CRA International (NASDAQ:CRAI), with an EV/EBITDA ratio of 6.74.

By Mallory Stone