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 |
|---|---|
| 1.14% | Progress Software Corp |
| 1.12% | Resolute Forest Products Common Stock |
| 1.10% | Encore Wire Corporation |
| 1.09% | Atkore Inc |
| 1.08% | Citi Trends, Inc. |
| 1.07% | Insteel Industries Inc |
| 1.07% | Gray Television, Inc. |
| 1.05% | Biglari Holdings Inc Class B |
| 1.05% | DHT Holdings Inc |
| 1.04% | First Community Bankshares Inc |
| 1.04% | First Busey Corporation |
| 1.03% | Central Pacific Financial Corp. |
| 1.03% | USA Truck, Inc. |
| 1.03% | Heidrick & Struggles International, Inc. |
| 1.03% | American Axle & Manufact. Holdings, Inc. |
| 1.03% | Clearwater Paper Corp |
| 1.03% | Escalade, Inc. |
| 1.03% | Meridian Bancorp Inc (MARYLAND) |
| 1.03% | First Bancorp |
| 1.02% | TriCo Bancshares |
| 1.02% | AudioCodes Ltd |
| 1.02% | Prestige Consumer Healthcare Inc |
| 1.02% | Koppers Holdings Inc. |
| 1.02% | Barrett Business Services, Inc. |
| 1.02% | City Office REIT Inc |
| 1.01% | 1st Source Corporation |
| 1.01% | Stewart Information Services Corp |
| 1.01% | Conn's Inc |
| 1.01% | Hope Bancorp Inc |
| 1.01% | Financial Institutions, Inc. |
| 1.01% | IES Holdings Inc |
| 1.01% | Kforce Inc. |
| 1.01% | Greenhill & Co., Inc. |
| 1.01% | Donnelley Financial Solutions Inc |
| 1.01% | CRA International, Inc. |
| 1.01% | Sculptor Capital Management Inc |
| 1.01% | Eagle Bancorp, Inc. |
| 1.01% | Global Industrial Co |
| 1.01% | Community Trust Bancorp, Inc. |
| 1.01% | Seneca Foods Corp Class A |
| 1.01% | Malibu Boats Inc |
| 1.00% | PJT Partners Inc |
| 1.00% | Movado Group, Inc |
| 1.00% | Ennis, Inc. |
| 1.00% | CNB Financial Corp |
| 1.00% | Resources Connection, Inc. |
| 1.00% | Hawkins, Inc. |
| 1.00% | Meta Financial Group Inc. |
| 1.00% | Oppenheimer Holdings Inc. |
| 1.00% | ArcBest Corp |
| 1.00% | Miller Industries, Inc. |
| 0.99% | Universal Logistics Holdings Inc |
| 0.99% | Diamond Hill Investment Group, Inc. |
| 0.99% | Employers Holdings, Inc. |
| 0.99% | International Bancshares Corp |
| 0.99% | Dime Community Bancshares Inc (New York) |
| 0.99% | Hooker Furniture Corporation |
| 0.99% | Boise Cascade Co |
| 0.99% | BlueLinx Holdings Inc. |
| 0.99% | Standard Motor Products, Inc. |
| 0.99% | Herman Miller, Inc. |
| 0.99% | Big 5 Sporting Goods Corporation |
| 0.99% | SpartanNash Co |
| 0.98% | Arbor Realty Trust Inc |
| 0.98% | GrafTech International Ltd |
| 0.98% | USANA Health Sciences, Inc. |
| 0.98% | Sturm Ruger & Company Inc |
| 0.98% | America's Car-Mart, Inc. |
| 0.98% | Lincoln Educational Services Corp |
| 0.98% | Adecoagro SA |
| 0.98% | Minerals Technologies Inc |
| 0.98% | Goldman Sachs BDC Inc |
| 0.98% | Flagstar Bancorp Inc |
| 0.98% | Safety Insurance Group, Inc. |
| 0.97% | American Public Education, Inc. |
| 0.97% | Quanex Building Products Corporation |
| 0.97% | Zumiez Inc. |
| 0.97% | Johnson Outdoors Inc. |
| 0.97% | The GEO Group Inc |
| 0.97% | La-Z-Boy Incorporated |
| 0.97% | Hercules Capital Inc |
| 0.97% | Mueller Industries, Inc. |
| 0.97% | Lakeland Industries, Inc. |
| 0.97% | Methode Electronics Inc. |
| 0.96% | Tri Pointe Homes Inc (Delaware) |
| 0.96% | Dynex Capital Inc |
| 0.96% | CAI International Inc |
| 0.96% | M/I Homes Inc |
| 0.96% | Hollysys Automation Technologies Ltd |
| 0.96% | PriceSmart, Inc. |
| 0.96% | American National Group Inc |
| 0.96% | Perdoceo Education Corp |
| 0.96% | Cavco Industries, Inc. |
| 0.96% | Renewable Energy Group Inc |
| 0.95% | Rent-A-Center Inc |
| 0.95% | Iamgold Corp |
| 0.95% | CTS Corporation |
| 0.93% | Tredegar Corporation |
| 0.92% | Lumber Liquidators Holdings Inc |
| 0.92% | Green Brick Partners Inc |
Contact us
Questions? Feel free to email or call us.
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.
© 2017 The Acquirer’s Multiple®. The Acquirer’s Multiple® is a registered trademark. All Rights Reserved.