Below are the three companies in the Consumer Electronics 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.
Zagg (NASDAQ:ZAGG) is lowest with an EV/EBITDA ratio of 3.38. Zagg Incorporated designs, manufactures and distribute branded protective coverings, audio accessories and power solutions for consumer electronic and hand-held devices.
Over the past year, Zagg has traded in a range of $4.21 to $17.10 and is now at $4.88, 16% above that low. In the last five trading sessions, the 50-day moving average (MA) has fallen 0.7% while the 200-day MA has slid 0.9%.
Following is Garmin (NASDAQ:GRMN) with an EV/EBITDA ratio of 10.55.
Finishing up the bottom three is Harman International Industries (NYSE:HAR), with an EV/EBITDA ratio of 14.39.