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