The Deep Value Index (DEEPI)

Small and Micro Cap Deep Value Index


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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 fraudearnings 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®



How to invest

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Constituents

Weight
Name
#N/AFlagstar Bancorp Inc
#N/APerdoceo Education Corp
#N/ASculptor Capital Management Inc
#N/ASeneca Foods Corp Class A
#N/ADynex Capital Inc
#N/AConn's Inc
#N/AHollysys Automation Technologies Ltd
#N/AZumiez Inc.
#N/ABoise Cascade Co
#N/ABig 5 Sporting Goods Corporation
#N/AMovado Group, Inc
#N/AGrafTech International Ltd
#N/ABiglari Holdings Inc Class B
#N/AHooker Furniture Corporation
#N/APJT Partners Inc
#N/ATri Pointe Homes Inc (Delaware)
#N/AFinancial Institutions, Inc.
#N/AHerman Miller, Inc.
#N/AUSANA Health Sciences, Inc.
#N/AHercules Capital Inc
#N/AMeta Financial Group Inc.
#N/AHeidrick & Struggles International, Inc.
#N/ABlueLinx Holdings Inc.
#N/AM/I Homes Inc
#N/ALa-Z-Boy Incorporated
#N/AAmerican Public Education, Inc.
#N/AArcBest Corp
#N/AKforce Inc.
#N/ASafety Insurance Group, Inc.
#N/ATriCo Bancshares
#N/AJohnson Outdoors Inc.
#N/AFirst Bancorp
#N/ADiamond Hill Investment Group, Inc.
#N/AEmployers Holdings, Inc.
#N/AOppenheimer Holdings Inc.
#N/AMueller Industries, Inc.
#N/AAmerica's Car-Mart, Inc.
#N/AGlobal Industrial Co
#N/ADHT Holdings Inc
#N/ACiti Trends, Inc.
#N/ADonnelley Financial Solutions Inc
#N/AClearwater Paper Corp
#N/AAdecoagro SA
#N/AMethode Electronics Inc.
#N/ACRA International, Inc.
#N/ACAI International Inc
#N/AThe GEO Group Inc
#N/AHope Bancorp Inc
#N/AEnnis, Inc.
#N/ACity Office REIT Inc
#N/ASpartanNash Co
#N/AMiller Industries, Inc.
#N/AResources Connection, Inc.
#N/AAtkore Inc
#N/APrestige Consumer Healthcare Inc
#N/A1st Source Corporation
#N/ACentral Pacific Financial Corp.
#N/ACommunity Trust Bancorp, Inc.
#N/AAudioCodes Ltd
#N/AIamgold Corp
#N/AGray Television, Inc.
#N/AInternational Bancshares Corp
#N/AFirst Community Bankshares Inc
#N/AKoppers Holdings Inc.
#N/AEagle Bancorp, Inc.
#N/AMeridian Bancorp Inc (MARYLAND)
#N/ABarrett Business Services, Inc.
#N/AAmerican National Group Inc
#N/AFirst Busey Corporation
#N/AStewart Information Services Corp
#N/AStandard Motor Products, Inc.
#N/AProgress Software Corp
#N/AUniversal Logistics Holdings Inc
#N/AIES Holdings Inc
#N/AEncore Wire Corporation
#N/AGreen Brick Partners Inc
#N/ACNB Financial Corp
#N/AEscalade, Inc.
#N/AArbor Realty Trust Inc
#N/ARent-A-Center Inc
#N/AGreenhill & Co., Inc.
#N/ADime Community Bancshares Inc (New York)
#N/ALakeland Industries, Inc.
#N/ALumber Liquidators Holdings Inc
#N/ASturm Ruger & Company Inc
#N/ALincoln Educational Services Corp
#N/ATredegar Corporation
#N/AAmerican Axle & Manufact. Holdings, Inc.
#N/AResolute Forest Products Common Stock
#N/AUSA Truck, Inc.
#N/AQuanex Building Products Corporation
#N/AInsteel Industries Inc
#N/ACTS Corporation
#N/ACavco Industries, Inc.
#N/AGoldman Sachs BDC Inc
#N/AHawkins, Inc.
#N/AMalibu Boats Inc
#N/AMinerals Technologies Inc
#N/APriceSmart, Inc.
#N/ARenewable Energy Group Inc
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Contact us

Questions? Feel free to email or call us.

  • tobias@acquirersmultiple.com
  • 646.535.8629