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Highest EV/EBITDA Ratio in the Communications Equipment Industry Detected in Shares of Sonus Networks (SONS, SHOR, INFN, EMKR, CMTL)

By Shiri Gupta

Below are the three companies in the Communications Equipment industry with the highest 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.

Sonus Networks ranks highest with a an EV/EBITDA ratio of 151.41. ShoreTel is next with a an EV/EBITDA ratio of 58.55. Infinera ranks third highest with a an EV/EBITDA ratio of 42.65.

Emcore follows with a an EV/EBITDA ratio of 30.28, and Comtech Telecommunications rounds out the top five with a an EV/EBITDA ratio of 24.06.

SmarTrend recommended that subscribers consider buying shares of Comtech Telecommunications on November 21st, 2016 as our technology indicated a new Uptrend was in progress when shares hit $11.51. Since that recommendation, shares of Comtech Telecommunications have risen 65.2%. We continue to monitor Comtech Telecommunications for any potential shift so investors can protect gains and will alert SmarTrend subscribers immediately.

Keywords: highest ev/ebitda ratio Sonus Networks shoretel Infinera emcore comtech telecommunications