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 |
|---|---|
| 4.58% | Atlantic Power Corp |
| 1.57% | Big 5 Sporting Goods Corporation |
| 1.44% | O-I Glass Inc |
| 1.33% | Golden Ocean Group Ltd |
| 1.20% | ODP Corp |
| 1.20% | American National Group Inc |
| 1.19% | Pro-Dex Inc |
| 1.15% | Curo Group Holdings Corp |
| 1.12% | Biglari Holdings Inc Class B |
| 1.11% | Oppenheimer Holdings Inc. |
| 1.10% | Herman Miller, Inc. |
| 1.09% | Core-Mark Holding Company, Inc. |
| 1.08% | Costamare Inc |
| 1.08% | Encore Wire Corporation |
| 1.07% | AudioCodes Ltd |
| 1.06% | B. Riley Financial Inc |
| 1.06% | M/I Homes Inc |
| 1.05% | Gray Television, Inc. |
| 1.05% | BrightSphere Investment Group Inc |
| 1.04% | Iamgold Corp |
| 1.04% | Stewart Information Services Corp |
| 1.04% | Prestige Consumer Healthcare Inc |
| 1.03% | Meridian Bancorp Inc (MARYLAND) |
| 1.03% | Methode Electronics Inc. |
| 1.03% | Rocky Brands Inc |
| 1.03% | Tri Pointe Homes Inc (Delaware) |
| 1.02% | Donnelley Financial Solutions Inc |
| 1.01% | Sierra Metals Inc |
| 1.01% | Progress Software Corp |
| 1.01% | Mueller Industries, Inc. |
| 1.00% | Resources Connection, Inc. |
| 0.99% | Dorian LPG Ltd |
| 0.99% | IES Holdings Inc |
| 0.98% | Standard Motor Products, Inc. |
| 0.98% | First of Long Island Corp |
| 0.97% | Diamond Hill Investment Group, Inc. |
| 0.97% | First Bancshares Inc (Mississippi) |
| 0.97% | Employers Holdings, Inc. |
| 0.97% | BlueLinx Holdings Inc. |
| 0.96% | GrafTech International Ltd |
| 0.96% | Dime Community Bancshares Inc (New York) |
| 0.96% | ACCO Brands Corporation |
| 0.96% | Boise Cascade Co |
| 0.96% | Boise Cascade Co |
| 0.96% | Rent-A-Center Inc |
| 0.96% | Albany International Corp. |
| 0.96% | SpartanNash Co |
| 0.95% | Eagle Bancorp, Inc. |
| 0.95% | First Community Bankshares Inc |
| 0.95% | USANA Health Sciences, Inc. |
| 0.95% | SLR Senior Investment Corp |
| 0.95% | Barrett Business Services, Inc. |
| 0.94% | Atkore Inc |
| 0.94% | Ennis, Inc. |
| 0.94% | Great Lakes Dredge & Dock Corporation |
| 0.94% | 1st Source Corporation |
| 0.93% | DXP Enterprises Inc |
| 0.93% | PC Connection, Inc. |
| 0.93% | Zumiez Inc. |
| 0.93% | Financial Institutions, Inc. |
| 0.93% | DHT Holdings Inc |
| 0.93% | PJT Partners Inc |
| 0.93% | Central Pacific Financial Corp. |
| 0.93% | Green Brick Partners Inc |
| 0.92% | Kimball International Inc |
| 0.92% | Perdoceo Education Corp |
| 0.92% | First Busey Corporation |
| 0.91% | Apogee Enterprises Inc |
| 0.90% | Primoris Services Corp |
| 0.90% | La-Z-Boy Incorporated |
| 0.90% | Enterprise Financial Services Corp |
| 0.90% | International Seaways Inc |
| 0.89% | Universal Corp |
| 0.88% | Amerisafe, Inc. |
| 0.88% | Caledonia Mining Corporation Plc |
| 0.88% | CNB Financial Corp |
| 0.88% | Hope Bancorp Inc |
| 0.88% | Great Southern Bancorp, Inc. |
| 0.88% | Cathay General Bancorp |
| 0.87% | Flagstar Bancorp Inc |
| 0.87% | Adtalem Global Education Inc |
| 0.87% | Community Trust Bancorp, Inc. |
| 0.86% | National HealthCare Corporation |
| 0.86% | Consolidated Water Co. Ltd. |
| 0.86% | Steelcase Inc. |
| 0.86% | Safety Insurance Group, Inc. |
| 0.86% | International Bancshares Corp |
| 0.84% | TriCo Bancshares |
| 0.84% | National Western Life Group Inc |
| 0.84% | The GEO Group Inc |
| 0.83% | Miller Industries, Inc. |
| 0.82% | Koppers Holdings Inc. |
| 0.82% | Systemax Inc. |
| 0.82% | Citi Trends, Inc. |
| 0.82% | Northwest Pipe Company |
| 0.81% | Greenhill & Co., Inc. |
| 0.81% | Seneca Foods Corp Class A |
| 0.78% | Johnson Outdoors Inc. |
| 0.70% | Clearwater Paper Corp |
| 0.65% | FutureFuel Corp. |
Contact us
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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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