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One interesting way to search for potentially undervalued opportunities is with the ratio levered free cash flow/enterprise value - stocks with high ratios may be undervalued relative to their cash flows.

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.

We ran a screen on micro-cap stocks with market caps just over $100 million for those with high ratios of levered free cash flow/enterprise value.

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.

We also created a price-weighted index of the stocks mentioned below, and monitored the performance of the list relative to the S&P 500 index over the last month. To access a complete analysis of this list's recent performance, click here.

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Do you think these companies should be trading higher? Use this list as a starting-off point for your own analysis.

List sorted by levered free cash flow/enterprise value.

1. RadiSys Corporation (NASDAQ:RSYS): Computer Based Systems Industry. Market cap of $212.39M. Levered free cash flow/enterprise value at 24.37% (levered free cash flow at $30.90M and enterprise value at $126.79M). The stock has lost 16.15% over the last year.

2. Arctic Cat Inc. (NASDAQ:ACAT): Recreational Vehicles Industry. Market cap of $261.61M. Levered free cash flow/enterprise value at 23.27% (levered free cash flow at $37.77M and enterprise value at $162.32M). The stock has had a couple of great days, gaining 14.75% over the last week. The stock has performed poorly over the last month, losing 15.25%.

3. Eastern Insurance Holdings, Inc. (NASDAQ:EIHI): Accident & Health Insurance Industry. Market cap of $104.96M. Levered free cash flow/enterprise value at 23.08% (levered free cash flow at $12.70M and enterprise value at $55.03M). The stock has gained 27.95% over the last year.

4. Amtech Systems Inc. (NASDAQ:ASYS): Semiconductor Equipment & Materials Industry. Market cap of $103.66M. Levered free cash flow/enterprise value at 22.46% (levered free cash flow at $9.75M and enterprise value at $43.42M). The stock has had a couple of great days, gaining 5.05% over the last week.

5. Almost Family Inc. (NASDAQ:AFAM): Home Health Care Industry. Market cap of $181.22M. Levered free cash flow/enterprise value at 22.07% (levered free cash flow at $28.07M and enterprise value at $127.19M). The stock is a short squeeze candidate, with a short float at 8.77% (equivalent to 5.17 days of average volume). The stock has had a couple of great days, gaining 8.47% over the last week.

6. Grupo Casa Saba SAB de CV (NYSE:SAB): Drugs Wholesale Industry. Market cap of $278.67M. Levered free cash flow/enterprise value at 21.40% (levered free cash flow at $233.22M and enterprise value at $1.09B). The stock is currently stuck in a downtrend, trading 17.56% below its SMA20, 29.62% below its SMA50, and 36.03% below its SMA200. It's been a rough couple of days for the stock, losing 5.15% over the last week.

7. Michael Baker Corporation (NYSEMKT:BKR): Management Services Industry. Market cap of $195.07M. Levered free cash flow/enterprise value at 21.01% (levered free cash flow at $22.31M and enterprise value at $106.20M). The stock has lost 37.15% over the last year.

8. OncoGenex Pharmaceuticals, Inc. (NASDAQ:OGXI): Diagnostic Substances Industry. Market cap of $107.42M. Levered free cash flow/enterprise value at 19.87% (levered free cash flow at $6.35M and enterprise value at $31.96M). This is a risky stock that is significantly more volatile than the overall market (beta = 2.17). The stock has performed poorly over the last month, losing 22.91%.

9. Feihe International, Inc. (NYSE:ADY): Dairy Products Industry. Market cap of $130.73M. Levered free cash flow/enterprise value at 19.50% (levered free cash flow at $46.26M and enterprise value at $237.21M). The stock is a short squeeze candidate, with a short float at 10.58% (equivalent to 11.61 days of average volume). It's been a rough couple of days for the stock, losing 6.66% over the last week.

10. Fortegra Financial Corporation (NYSE:FRF): Property & Casualty Insurance Industry. Market cap of $108.87M. Levered free cash flow/enterprise value at 18.53% (levered free cash flow at $35.75M and enterprise value at $192.96M). The stock is currently stuck in a downtrend, trading 12.56% below its SMA20, 27.32% below its SMA50, and 46.69% below its SMA200. The stock has had a couple of great days, gaining 7.09% over the last week.

11. New York & Company Inc. (NYSE:NWY): Apparel Stores Industry. Market cap of $206.91M. Levered free cash flow/enterprise value at 18.44% (levered free cash flow at $31.61M and enterprise value at $171.40M). This is a risky stock that is significantly more volatile than the overall market (beta = 2.89). The stock is currently stuck in a downtrend, trading 20.49% below its SMA20, 28.26% below its SMA50, and 33.91% below its SMA200. The stock has performed poorly over the last month, losing 37.8%.

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

Source: 11 Micro-Cap Stocks Undervalued Relative To Cash Flow