About The Deep Value Index (DEEPI)
The Deep Value Index identifies undervalued stocks using The Acquirer’s Multiple®.
The Index is composed of the 100 most undervalued, fundamentally strong stocks listed in the US.
Constituent stocks are selected from the smallest 75% of all stocks by number (equivalent to a market cap smaller than about $2.5 billion).
How it works
Step 1.
The Index identifies potentially undervalued stocks using The Acquirer’s Multiple®.
The initial universe of stocks is valued holistically—assets, earnings, and cash flows are examined—to understand the economic reality of each stock. Each stock is ranked on the basis of such valuation.
Potential components are further evaluated using statistical measures of fraud, earnings manipulation, and financial distress.
Step 2.
Each potential component is examined for a margin of safety in three ways:
(a) a wide discount to a conservative valuation,
(b) a strong, liquid balance sheet, and
(c) a robust business capable of generating free cash flows.
Step 3.
Finally, a forensic-accounting due diligence review of each of the remaining potential components’ financial statements, particularly the notes and management’s discussion and analysis, is undertaken.
The Index is formed from the components passing each stage. Each position will be weighted to about 1% of the Index value.
The Index is reconstituted and rebalanced quarterly.
About The Acquirer’s Multiple®
Constituents
DEEPi Index
| Weight | Name |
|---|---|
| 1.50% | Rimini Street, Inc. |
| 1.23% | BlueLinx Holdings, Inc. |
| 1.22% | Herbalife Ltd. |
| 1.21% | Hovnanian Enterprises, Inc. |
| 1.19% | Acadian Asset Management, Inc. |
| 1.15% | Nu Skin Enterprises, Inc. |
| 1.14% | Ironwood Pharmaceuticals, Inc. |
| 1.12% | Ferroglobe PLC |
| 1.10% | G-III Apparel Group Ltd. |
| 1.10% | Century Communities, Inc. |
| 1.10% | Perion Network Ltd. |
| 1.10% | Target Hospitality Corp. |
| 1.10% | REX American Resources Corp. |
| 1.08% | Axcelis Technologies, Inc. |
| 1.08% | Regional Management Corp. |
| 1.08% | Insteel Industries, Inc. |
| 1.08% | Olaplex Holdings, Inc. |
| 1.08% | Hudson Technologies, Inc. |
| 1.07% | Olympic Steel, Inc. |
| 1.07% | Movado Group, Inc. |
| 1.07% | Ethan Allen Interiors, Inc. |
| 1.07% | Malibu Boats, Inc. |
| 1.07% | Janus International Group, Inc. |
| 1.07% | World Acceptance Corp. |
| 1.06% | Donnelley Financial Solutions, Inc. |
| 1.06% | Mastercraft Boat Holdings, Inc. |
| 1.06% | The RMR Group, Inc. |
| 1.06% | dLocal Ltd. |
| 1.06% | Shoe Carnival, Inc. |
| 1.05% | Peabody Energy Corp. |
| 1.05% | USANA Health Sciences, Inc. |
| 1.05% | Omega Flex, Inc. |
| 1.05% | Steven Madden Ltd. |
| 1.04% | Kforce, Inc. |
| 1.04% | NVE Corp. |
| 1.04% | InMode Ltd. |
| 1.04% | Ingles Markets, Inc. |
| 1.03% | Shutterstock, Inc. |
| 1.03% | Alpha Metallurgical Resources, Inc. |
| 1.02% | Ituran Location & Control Ltd. |
| 1.02% | Diamond Hill Investment Group, Inc. |
| 1.02% | Karat Packaging, Inc. |
| 1.02% | John B. Sanfilippo & Son, Inc. |
| 1.02% | Legacy Housing Corp. |
| 1.01% | Genco Shipping & Trading Ltd. |
| 1.00% | SIGA Technologies, Inc. |
| 1.00% | Star Bulk Carriers Corp. |
| 1.00% | MGP Ingredients, Inc. |
| 1.00% | Photronics, Inc. |
| 1.00% | Safe Bulkers, Inc. |
| 1.00% | Global Industrial Co. |
| 1.00% | IHS Holding Ltd. |
| 1.00% | Winnebago Industries, Inc. |
| 0.99% | Carter's, Inc. |
| 0.99% | Global Ship Lease, Inc. |
| 0.99% | Berry Corp. |
| 0.99% | PROG Holdings, Inc. |
| 0.99% | International General Insurance Holdings Ltd. |
| 0.98% | Resources Connection, Inc. |
| 0.97% | Lindsay Corp. |
| 0.97% | Ardmore Shipping Corp. |
| 0.97% | The Hackett Group, Inc. |
| 0.96% | Utah Medical Products, Inc. |
| 0.96% | Nathan's Famous, Inc. |
| 0.96% | RPC, Inc. |
| 0.96% | Investors Title Co. |
| 0.95% | Danaos Corp. |
| 0.95% | Playtika Holding Corp. |
| 0.95% | Sylvamo Corp. |
| 0.95% | International Seaways, Inc. |
| 0.94% | Teradata Corp. |
| 0.94% | Gladstone Investment Corp. |
| 0.94% | Build-A-Bear Workshop, Inc. |
| 0.94% | National Research Corp. |
| 0.94% | Rocket Cos., Inc. |
| 0.94% | Thryv Holdings, Inc. |
| 0.94% | CPI Card Group, Inc. |
| 0.93% | Consensus Cloud Solutions, Inc. |
| 0.93% | Gambling.com Group Ltd. |
| 0.92% | AMN Healthcare Services, Inc. |
| 0.92% | XPEL, Inc. |
| 0.92% | Torm PLC |
| 0.92% | Riley Exploration Permian, Inc. |
| 0.92% | AMC Networks, Inc. |
| 0.92% | JAKKS Pacific, Inc. |
| 0.92% | Mesabi Trust |
| 0.90% | Amplify Energy Corp. |
| 0.90% | Sturm, Ruger & Co., Inc. |
| 0.88% | Papa John's International, Inc. |
| 0.87% | Teekay Tankers Ltd. |
| 0.87% | SandRidge Energy, Inc. |
| 0.87% | GeoPark Ltd. |
| 0.86% | ZIM Integrated Shipping Services Ltd. |
| 0.86% | IDT Corp. |
| 0.85% | Cross Country Healthcare, Inc. |
| 0.82% | Innoviva, Inc. |
| 0.80% | Cricut, Inc. |
| 0.79% | Amphastar Pharmaceuticals, Inc. |
| 0.77% | Smith & Wesson Brands, Inc. |
| 0.71% | Gran Tierra Energy, Inc. |
| Weight | Name |
Contact us
Questions? Feel free to email or call us.
- tobias@acquirersmultiple.com
- 646.535.8629
Disclaimer: acquirersmultiple.com is not an investment adviser, brokerage firm, or investment company. “The Acquirer’s Multiple®” is a term used to describe the investment strategy explained in the book Deep Value: Why Activist Investors and Other Contrarians Battle for Control of Losing Corporations. Use of the formula does not guarantee performance or investment success. acquirersmultiple.com is owned in part by Tobias Carlisle.
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