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Relatively Low EV/EBITDA Ratio Detected in Shares of Rocky Brands in the Footwear Industry (RCKY, DECK, NKE, SHOO, SKX)

By Shiri Gupta

Below are the three companies in the Footwear 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.

Rocky Brands ranks lowest with a an EV/EBITDA ratio of 5.57. Following is Deckers Outdoor with a an EV/EBITDA ratio of 8.76. NIKE ranks third lowest with a an EV/EBITDA ratio of 8.83.

Steven Madden follows with a an EV/EBITDA ratio of 11.36, and Skechers U.S.A. rounds out the bottom five with a an EV/EBITDA ratio of 11.58.

SmarTrend recommended that its subscribers protect gains by selling shares of NIKE on December 24th, 2015 by issuing a Downtrend alert when the shares were trading at $63.44. Since that call, shares of NIKE have fallen 10.6%. We are now looking for when a new Uptrend will commence and will alert SmarTrend subscribers in real time.

Keywords: lowest ev/ebitda ratio rocky brands deckers outdoor Nike steven madden skechers u.s.a.