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Relatively Low EV/EBITDA Ratio Detected in Shares of Applied Optoelec in the Communications Equipment Industry (AAOI, IDCC, EMKR, SATS, NTGR)

By Nick Russo

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.

Applied Optoelec ranks lowest with a an EV/EBITDA ratio of 1.96. Following is Interdigital Inc with a an EV/EBITDA ratio of 2.50. Emcore Corp ranks third lowest with a an EV/EBITDA ratio of 3.17.

Echostar Corp-A follows with a an EV/EBITDA ratio of 5.07, and Netgear Inc rounds out the bottom five with a an EV/EBITDA ratio of 6.81.

SmarTrend is tracking the current trend status for Applied Optoelec and will alert subscribers who have AAOI in their portfolio or watchlist when shares have changed trend direction.

Keywords: lowest ev/ebitda ratio applied optoelec interdigital inc emcore corp echostar corp-a netgear inc