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Comtech Telecommunications has the Lowest EV/EBITDA Ratio in the Communications Equipment Industry (CMTL, SATS, ARRS, BRCD, BELFB)

By Shiri Gupta

Below are the three companies in the Communications Equipment industry with the lowest enterprise value to EBITDA (EV/EBITDA) ratios. EV/EBITDA is an important metric used in valuing comparable companies. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Comtech Telecommunications ranks lowest with a an EV/EBITDA ratio of 1.42. Following is EchoStar with a an EV/EBITDA ratio of 4.83. Arris Group ranks third lowest with a an EV/EBITDA ratio of 5.09.

Brocade Communications Systems follows with a an EV/EBITDA ratio of 5.70, and Bel Fuse rounds out the bottom five with a an EV/EBITDA ratio of 6.80.

SmarTrend recommended that its subscribers protect gains by selling shares of Comtech Telecommunications on June 9th, 2016 by issuing a Downtrend alert when the shares were trading at $21.26. Since that call, shares of Comtech Telecommunications have fallen 38.3%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: lowest ev/ebitda ratio comtech telecommunications echostar Arris Group brocade communications systems bel fuse