Where Are the Highest-Quality Value Opportunities This Week?

This week’s Acquirer’s Multiple® All Investable Stocks Screener highlights attractive valuations across energy, mining, chemicals, technology and consumer businesses.

This week we look at the 30 cheapest companies, all trading below 6.6x Acquirer’s Multiple®, with a median valuation of approximately 5.1x.

The Acquirer’s Multiple® compares enterprise value with operating earnings.

To identify businesses combining value and quality, we applied four filters:

• Acquirer’s Multiple below 12x

• Five-year average return on assets above 15%

• Positive free-cash-flow yield

• Debt-to-equity below 50%

Fifteen of the 30 companies meet all four requirements, with a median Acquirer’s Multiple of 4.4x, median free-cash-flow yield of 11.5% and median five-year return on assets of 26.9%.

These figures describe the supplied 30-company export, not the complete All Investable universe.

Where Quality Value Is Appearing

Energy dominates the cheapest companies, with refiners and integrated producers particularly prominent.

PBF Energy leads the screen at just 2.6x, offering a 32.8% free-cash-flow yield. Equinor follows at 2.6x, with an 11.5% free-cash-flow yield and 26.9% five-year return on assets.

HF Sinclair (3.4x), Valero (5.5x) and APA Corporation (5.5x) also satisfy all four filters.

Mining provides another substantial concentration of qualifying businesses.

Sibanye Stillwater trades at 3.2x, with a 12.6% free-cash-flow yield and 26.0% five-year return on assets.

Harmony Gold (3.8x), B2Gold (4.3x), SSR Mining (4.8x), OceanaGold (5.3x), Kinross Gold (5.8x) and Gold Fields (6.2x) also qualify.

These businesses offer strong historical profitability, although commodity prices and production costs remain important risks.

Technology contributes a standout candidate.

SK Hynix trades at 4.4x, with a 9.5% free-cash-flow yield and 61.2% five-year return on assets. Semiconductor demand, memory pricing and capital expenditure remain important considerations.

Chemicals and energy shipping provide additional opportunities, including Sasol (3.9x) and Torm (6.2x).

Bottom Line

This week’s supplied screen reveals 15 qualifying companies among the 30 cheapest, concentrated primarily in energy and mining.

Compared with last week, the cheapest end shows renewed energy leadership. Equinor's multiple has fallen from 3.7x to 2.6x, while Sibanye Stillwater has moved from 2.9x to 3.2x.

The previous export contained 232 companies, so broader qualification totals cannot be directly compared.

The positive incremental growth requirement also remains unavailable in the supplied data.

Subscribers can explore the complete ranked universe, compare valuation and quality measures, and identify additional opportunities beyond these 30 companies.

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