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
Weight | Name |
|---|---|
| 1.49% | ODP Corp |
| 1.36% | Atlantic Power Corp |
| 1.25% | Rent-A-Center Inc |
| 1.22% | Koppers Holdings Inc. |
| 1.16% | BlueLinx Holdings Inc. |
| 1.15% | Simmons First National Corporation |
| 1.12% | GrafTech International Ltd |
| 1.11% | Cathay General Bancorp |
| 1.11% | Hope Bancorp Inc |
| 1.10% | Solaris Oilfield Infrastructure Inc |
| 1.10% | DXP Enterprises Inc |
| 1.08% | Titan Machinery Inc. |
| 1.07% | Great Lakes Dredge & Dock Corporation |
| 1.07% | Northwest Pipe Company |
| 1.07% | Atkore International Group Inc |
| 1.07% | Orion Group Holdings Inc |
| 1.07% | FutureFuel Corp. |
| 1.07% | TriCo Bancshares |
| 1.07% | First Bancshares Inc (Mississippi) |
| 1.07% | International Bancshares Corp |
| 1.06% | Tristate Capital Holdings Inc |
| 1.06% | Berkshire Hills Bancorp, Inc. |
| 1.06% | Financial Institutions, Inc. |
| 1.05% | Interface, Inc. |
| 1.05% | Miller Industries, Inc. |
| 1.05% | Apogee Enterprises Inc |
| 1.05% | Flagstar Bancorp Inc |
| 1.05% | Powell Industries, Inc. |
| 1.04% | PC Connection, Inc. |
| 1.04% | Primoris Services Corp |
| 1.04% | Hanmi Financial Corp |
| 1.03% | Costamare Inc |
| 1.03% | Bridge Bancorp, Inc. |
| 1.03% | Eagle Bancorp, Inc. |
| 1.02% | O-I Glass Inc |
| 1.02% | Meridian Bancorp Inc (MARYLAND) |
| 1.02% | Vectrus Inc |
| 1.01% | Central Pacific Financial Corp. |
| 1.01% | 1st Source Corporation |
| 1.01% | Golden Ocean Group Ltd |
| 1.01% | First Busey Corporation |
| 1.01% | CNB Financial Corp |
| 1.01% | Encore Wire Corporation |
| 1.01% | Mueller Industries, Inc. |
| 1.00% | First Financial Corp |
| 0.99% | Photronics, Inc. |
| 0.99% | DHT Holdings Inc |
| 0.99% | ScanSource, Inc. |
| 0.99% | Stonex Group Inc |
| 0.99% | MYR Group Inc |
| 0.99% | Ennis, Inc. |
| 0.99% | Cactus Inc |
| 0.98% | International Seaways Inc |
| 0.98% | Methode Electronics Inc. |
| 0.98% | Enterprise Financial Services Corp |
| 0.98% | Community Trust Bancorp, Inc. |
| 0.98% | Core-Mark Holding Company, Inc. |
| 0.98% | Sanmina Corp |
| 0.97% | PJT Partners Inc |
| 0.97% | Hawkins, Inc. |
| 0.97% | National HealthCare Corporation |
| 0.97% | Great Southern Bancorp, Inc. |
| 0.97% | IDT Corporation |
| 0.97% | Kelly Services, Inc. Class A |
| 0.96% | SpartanNash Co |
| 0.96% | Kimball International Inc |
| 0.96% | Universal Corp |
| 0.96% | National Presto Industries Inc. |
| 0.96% | American National Group Inc |
| 0.95% | Albany International Corp. |
| 0.95% | First of Long Island Corp |
| 0.95% | Employers Holdings, Inc. |
| 0.95% | Diamond Hill Investment Group, Inc. |
| 0.95% | First Community Bankshares Inc |
| 0.95% | Trueblue Inc |
| 0.94% | Schweitzer-Mauduit International, Inc. |
| 0.93% | National Western Life Group Inc |
| 0.93% | Donnelley Financial Solutions Inc |
| 0.93% | Resources Connection, Inc. |
| 0.93% | Gray Television, Inc. |
| 0.92% | Kforce Inc. |
| 0.92% | Greenhill & Co., Inc. |
| 0.92% | Stewart Information Services Corp |
| 0.92% | Oppenheimer Holdings Inc. |
| 0.92% | ACCO Brands Corporation |
| 0.92% | Boise Cascade Co |
| 0.91% | The GEO Group Inc |
| 0.90% | Amerisafe, Inc. |
| 0.90% | Steelcase Inc. |
| 0.90% | Seneca Foods Corp Class A |
| 0.90% | Safety Insurance Group, Inc. |
| 0.90% | Standard Motor Products, Inc. |
| 0.89% | HNI Corp |
| 0.89% | Curo Group Holdings Corp |
| 0.88% | Barrett Business Services, Inc. |
| 0.86% | M/I Homes Inc |
| 0.85% | Green Brick Partners Inc |
| 0.82% | Iamgold Corp |
| 0.78% | Biglari Holdings Inc Class B |
| 0.68% | Genworth Financial Inc |
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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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