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Top 5 Companies in the Data Processing & Outsourced Services Industry With the Lowest EV/EBITDA Ratio (NSR, CVG, SYNT, SYKE, CSGS)

By Nick Russo

Below are the three companies in the Data Processing & Outsourced Services 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.

NeuStar ranks lowest with a an EV/EBITDA ratio of 5.68. Convergys is next with a an EV/EBITDA ratio of 5.82. Syntel ranks third lowest with a an EV/EBITDA ratio of 6.20.

SYKES Enterprises follows with a an EV/EBITDA ratio of 6.75, and CSG Systems rounds out the bottom five with a an EV/EBITDA ratio of 7.76.

SmarTrend recommended that its subscribers protect gains by selling shares of Syntel on July 22nd, 2016 by issuing a Downtrend alert when the shares were trading at $43.86. Since that call, shares of Syntel have fallen 61.5%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: lowest ev/ebitda ratio neustar Convergys Syntel sykes enterprises csg systems

Ticker(s): NSR CVG SYNT SYKE CSGS