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Top 3 Companies in the Health Care Equipment Industry With the Lowest EV/EBITDA Ratio (ZYXI, TGX, OFIX)

Published on Thu, 06/20/2013 - 11:13
By Peter Chu

Below are the three companies in the Health Care Equipment 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.

Zynex (NASDAQ:ZYXI) is lowest with an EV/EBITDA ratio of 4.71. Zynex Inc., through its subsidiary, markets electro therapy products which help improve life of patients who have functional disabilities. The Company's products include muscle stimulation, inferential, and TENS devices. Zynex products are intended for home use for stroke rehabilitation, spinal cord injury rehabilitation, incontinence, and other applications. Thus far today, Zynex has traded 0 shares, vs. average volume of 18,000 shares per day. The stock has outperformed the Dow (15.6% to the Dow's -1.4%) and outperformed the S&P 500 (15.6% to the S&P's -1.4%) during today's trading.

Theragenics (NYSE:TGX) is next with an EV/EBITDA ratio of 5.09.

Finishing up the bottom three is Orthofix International (NASDAQ:OFIX), with an EV/EBITDA ratio of 5.85.

By Peter Chu
pchu@fnno.com