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For this article we wanted to consider stocks trading near their 52-week lows with an alternative to the widely used Price to Free Cash Flow ratio (P/FCF): Levered Free Cash Flow to Enterprise Value.

P/FCF is a very helpful ratio for comparing the price of companies, however there are some drawbacks. Using market cap in the numerator limits comparisons to companies with similar capital structures, and using free cash flow ignores financing costs.

For these reasons, we use a ratio of levered free cash flow to enterprise value. Levered free cash flow is the free cash flow after deducting interest payments on outstanding debt. Enterprise value is the sum of the firm’s value from all ownership sources: market cap, outstanding debt, and preferred shares. From this value we subtract cash holdings because, in the event of a takeover, that cash would be used towards the takeover price.

For this article, we screened for stocks trading within 10% of their 52-week lows that had high amounts of levered free cash flow relative to enterprise value, possibly indicating that the firm is being undervalued by the market.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the top six stocks mentioned below. Analyst ratings sourced from Zacks Investment Research.

Do you think these stocks might soon bounce back? Use this list as a starting-off point for your own analysis.

List sorted by levered free cash flow / enterprise value.

1. China Life Insurance Co. Ltd. (NYSE:LFC): Life Insurance Industry. Market cap of $95.52B. The stock is currently trading 0.74% above its 52-week low. Levered free cash flow / enterprise value at 37.4% (levered free cash flow at $32.82B and enterprise value at $87.75B). The stock has lost 19.63% over the last year.

2. Nokia Corporation (NYSE:NOK): Communication Equipment Industry. Market cap of $25.30B. The stock is currently trading 2.95% above its 52-week low. Levered free cash flow / enterprise value at 32.99% (levered free cash flow at $4.84B and enterprise value at $14.67B). The stock is currently stuck in a downtrend, trading 17.86% below its SMA20, 19.08% below its SMA50, and 26.73% below its SMA200. It's been a rough couple of days for the stock, losing 17.68% over the last week.

3. Southwest Airlines Co. (NYSE:LUV): Regional Airlines Industry. Market cap of $9.16B. The stock is currently trading 7.97% above its 52-week low. Levered free cash flow / enterprise value at 19.44% (levered free cash flow at $1.47B and enterprise value at $7.56B). The stock is currently stuck in a downtrend, trading 6.33% below its SMA20, 6.11% below its SMA50, and 9.81% below its SMA200. The stock has lost 3.67% over the last year.

4. Ternium S.A. (NYSE:TX): Steel & Iron Industry. Market cap of $6.02B. The stock is currently trading 1.68% above its 52-week low. Levered free cash flow / enterprise value at 19.09% (levered free cash flow at $954.61M and enterprise value at $5.00B). This is a risky stock that is significantly more volatile than the overall market (beta = 2.21). The stock has lost 3.97% over the last year.

5. Genworth Financial Inc. (NYSE:GNW): Life Insurance Industry. Market cap of $5.26B. The stock is currently trading 2.00% above its 52-week low. Levered free cash flow / enterprise value at 18.33% (levered free cash flow at $2.17B and enterprise value at $11.84B). This is a risky stock that is significantly more volatile than the overall market (beta = 3.12). The stock has performed poorly over the last month, losing 11.1%.

6. Lexmark International Inc. (NYSE:LXK): Computer Based Systems Industry. Market cap of $2.23B. The stock is currently trading 0.76% above its 52-week low. Levered free cash flow / enterprise value at 17.57% (levered free cash flow at $282.92M and enterprise value at $1.61B). The stock is currently stuck in a downtrend, trading 6.24% below its SMA20, 15.7% below its SMA50, and 24.74% below its SMA200. The stock has performed poorly over the last month, losing 11.66%.

7. RadioShack Corp. (NYSE:RSH): Electronics Stores Industry. Market cap of $1.49B. The stock is currently trading 1.91% above its 52-week low. Levered free cash flow / enterprise value at 14.2% (levered free cash flow at $213.01M and enterprise value at $1.50B). The stock is a short squeeze candidate, with a short float at 16.14% (equivalent to 5.02 days of average volume). It's been a rough couple of days for the stock, losing 8.39% over the last week.

8. Aeropostale, Inc. (NYSE:ARO): Apparel Stores Industry. Market cap of $1.45B. The stock is currently trading 3.28% above its 52-week low. Levered free cash flow / enterprise value at 13.64% (levered free cash flow at $163.68M and enterprise value at $1.20B). The stock is currently stuck in a downtrend, trading 11.39% below its SMA20, 23.55% below its SMA50, and 27.11% below its SMA200. The stock has performed poorly over the last month, losing 29.7%.

9. Janus Capital Group, Inc. (NYSE:JNS): Asset Management Industry. Market cap of $1.77B. The stock is currently trading 9.64% above its 52-week low. Levered free cash flow / enterprise value at 11.41% (levered free cash flow at $213.39M and enterprise value at $1.87B). This is a risky stock that is significantly more volatile than the overall market (beta = 2.67). JNS might be undervalued at current levels, with a PEG ratio at 0.86, and P/FCF ratio at 7.03.

10. China Mobile Limited (NYSE:CHL): Wireless Communications Industry. Market cap of $181.25B. The stock is currently trading 3.22% above its 52-week low. Levered free cash flow / enterprise value at 11.22% (levered free cash flow at $15.86B and enterprise value at $141.36B). The stock offers a good dividend, and appears to have good liquidity to back it up--dividend yield at 4.29%, current ratio at 1.26, and quick ratio at 1.24. The stock has gained 1.28% over the last year.

11. Research In Motion Limited (RIMM): Diversified Communication Services Industry. Market cap of $20.43B. The stock is currently trading 1.48% above its 52-week low. Levered free cash flow / enterprise value at 10.78% (levered free cash flow at $1.96B and enterprise value at $18.19B). It's been a rough couple of days for the stock, losing 10.53% over the last week.

*Levered free cash flow and enterprise value sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 11 Stocks Trading Near Lows, Undervalued Relative to Levered Free Cash Flow