As part of a new series here at The Acquirer’s Multiple, we’re providing a new feature called ‘Stock in Focus‘ where we focus on one of the stocks from our Stock Screeners.

One of the cheapest stocks in our Stock Screeners is Perion Network Ltd (NASDAQ: PERI).

Perion Network Ltd is a technology company. It offers online advertising and searching solutions to brands, agencies, and publishers through desktop, mobile and social channels. Its products and services include Undertone, Codefuel, Makemereach and Smilebox. The company earns prime revenue from search fees and online advertising services. It operates in the business segment of High Impact Advertising solutions. Geographically, the group has a business presence in North America, Europe, and Other countries of which a majority of the revenue is derived from North America.

A quick look at Perion Network Ltd’s share price history (below) over the past twelve months shows that the price is up 51%. But here’s why the company is undervalued.

Summary

Market Cap: $119 Million

Enterprise Value: $97 Million

Operating Earnings*

Operating Earnings: $18 Million

Acquirer’s Multiple

Acquirer’s Multiple: 5.39

Free Cash Flow (TTM)

Free Cash Flow: $43.5 Million

FCF/EV Yield:

FCF/EV Yield: 45%

Other Indicators

Piotroski F-Score: 6

Altman Z-Score: 1.51

Beneish M Score: -3.03

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