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Price multiples are a helpful tool for finding potentially undervalued stocks, and using more than one can provide further evidence that a stock is trading too low. With that idea in mind, we screened the semiconductor industry for stocks with TTM P/E, PEG, and TTM P/CF ratios below their industry averages, indicating that these stocks appear undervalued relative to these measures.

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.)

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

List sorted by TTM P/E.

1. KLA-Tencor Corporation (KLAC): Engages in the design, manufacture, and marketing of process control and yield management solutions for the semiconductor and related nanoelectronics industries. Market cap of $7.82B. TTM P/E at 9.64 vs. industry average at 22.64. PEG at 1.01 vs. industry average at 1.58. TTM P/CF at 8.53 vs. industry average at 17.50. The stock has had a couple of great days, gaining 11.57% over the last week.

2. Novellus Systems, Inc. (NVLS): Develops, manufactures, sells, and supports equipment used in the fabrication of integrated circuits. Market cap of $2.34B. TTM P/E at 10.20 vs. industry average at 22.64. PEG at 0.89 vs. industry average at 1.58. TTM P/CF at 8.45 vs. industry average at 17.50. The stock has had a couple of great days, gaining 11.43% over the last week.

3. SanDisk Corp. (SNDK): Designs, develops, manufactures, and markets NAND-based flash data storage card products that are used in various consumer electronics products. Market cap of $12.09B. TTM P/E at 10.25 vs. industry average at 14.51. PEG at 0.59 vs. industry average at 0.97. TTM P/CF at 8.96 vs. industry average at 12.06. The stock has had a couple of great days, gaining 10.45% over the last week.

4. Entegris, Inc. (ENTG): Develops, manufactures, and supplies products and materials used in processing and manufacturing in the semiconductor and other high-technology industries worldwide. Market cap of $1.15B. TTM P/E at 10.39 vs. industry average at 22.65. PEG at 0.90 vs. industry average at 1.61. TTM P/CF at 7.69 vs. industry average at 17.51. The stock has had a couple of great days, gaining 11.96% over the last week.

5. Intel Corporation (INTC): Engages in the design, manufacture, and sale of integrated circuits for computing and communications industries worldwide. Market cap of $125.47B. TTM P/E at 10.53 vs. industry average at 22.65. PEG at 0.94 vs. industry average at 1.58. TTM P/CF at 7.10 vs. industry average at 17.51. The stock has had a couple of great days, gaining 8.4% over the last week.

6. Marvell Technology Group Ltd. (MRVL): Designs, develops, and markets analog, mixed-signal, digital signal processing, and embedded and standalone ARM-based microprocessor integrated circuits. Market cap of $8.35B. TTM P/E at 11.69 vs. industry average at 22.65. PEG at 0.74 vs. industry average at 1.58. TTM P/CF at 9.52 vs. industry average at 17.51. The stock has lost 32.53% over the last year.

7. Analog Devices Inc. (ADI): Engages in the design, manufacture, and marketing of analog, mixed-signal, and digital signal processing integrated circuits used in industrial, communication, computer, and consumer applications. Market cap of $10.51B. TTM P/E at 12.64 vs. industry average at 22.65. PEG at 1.49 vs. industry average at 1.61. TTM P/CF at 10.77 vs. industry average at 17.51. The stock has had a couple of great days, gaining 10.05% over the last week.

8. Linear Technology Corp. (LLTC): Designs, manufactures, and markets a line of linear integrated circuits. Market cap of $6.98B. TTM P/E at 12.87 vs. industry average at 22.64. PEG at 1.33 vs. industry average at 1.58. TTM P/CF at 11.52 vs. industry average at 17.50. The stock has had a couple of great days, gaining 7.93% over the last week.

9. Taiwan Semiconductor Manufacturing Co. Ltd. (TSM): Engages in the computer-aided designing, manufacturing, packaging, testing, and selling integrated circuits and other semiconductor devices; and manufacturing masks. Market cap of $68.0B. TTM P/E at 13.39 vs. industry average at 22.65. PEG at 1.15 vs. industry average at 1.58. TTM P/CF at 8.73 vs. industry average at 17.51. The stock has had a couple of great days, gaining 8.7% over the last week.

10. Diodes Incorporated (DIOD): Makes and distributes standard semiconductor products to manufacturers in the consumer electronic, computer, communications, industrial, and automotive markets. Market cap of $941.14M. TTM P/E at 13.48 vs. industry average at 22.65. PEG at 0.90 vs. industry average at 1.61. TTM P/CF at 7.14 vs. industry average at 17.51. This is a risky stock that is significantly more volatile than the overall market (beta = 2.16). The stock is a short squeeze candidate, with a short float at 12.05% (equivalent to 10.16 days of average volume). The stock has had a couple of great days, gaining 12% over the last week.

11. FSI International Inc. (FSII): Designs, manufactures, markets, and supports equipment used in the fabrication of microelectronics, such as advanced semiconductor devices. Market cap of $116.58M. TTM P/E at 13.64 vs. industry average at 22.64. PEG at 0.68 vs. industry average at 1.58. TTM P/CF at 11.13 vs. industry average at 17.50. This is a risky stock that is significantly more volatile than the overall market (beta = 2.47). The stock is a short squeeze candidate, with a short float at 8.55% (equivalent to 8.34 days of average volume). The stock has had a couple of great days, gaining 35.14% over the last week.

12. Skyworks Solutions Inc. (SWKS): Offers analog and mixed signal semiconductors worldwide. Market cap of $3.07B. TTM P/E at 13.74 vs. industry average at 22.65. PEG at 0.91 vs. industry average at 1.58. TTM P/CF at 10.97 vs. industry average at 17.51. The stock has performed poorly over the last month, losing 14.31%.

13. Avago Technologies Limited (AVGO): Engages in the design, development, and supply of analog semiconductor devices worldwide. Market cap of $7.65B. TTM P/E at 14.16 vs. industry average at 22.64. PEG at 1.30 vs. industry average at 1.58. TTM P/CF at 10.77 vs. industry average at 17.50. The stock has had a couple of great days, gaining 9.56% over the last week.

14. Altera Corp. (ALTR): Designs, manufactures, and markets programmable logic devices (plds); structured application-specific integrated circuit devices; predefined design building blocks or intellectual-property cores; and associated development tools. Market cap of $11.92B. TTM P/E at 14.18 vs. industry average at 22.64. PEG at 0.94 vs. industry average at 1.58. TTM P/CF at 13.48 vs. industry average at 17.50. The stock has had a couple of great days, gaining 8.88% over the last week.

15. NVIDIA Corporation (NVDA): Provides visual computing, high performance computing, and mobile computing solutions that generate interactive graphics on various devices ranging from tablets and smart phones to notebooks and workstations. Market cap of $9.60B. TTM P/E at 14.97 vs. industry average at 22.65. PEG at 1.0 vs. industry average at 1.58. TTM P/CF at 11.31 vs. industry average at 17.51. The stock has had a couple of great days, gaining 11.97% over the last week.

16. Xilinx Inc. (XLNX): Designs, develops, and markets programmable platforms in North America, the Asia Pacific, Europe, and Japan. Market cap of $8.69B. TTM P/E at 15.05 vs. industry average at 22.65. PEG at 1.25 vs. industry average at 1.61. TTM P/CF at 13.38 vs. industry average at 17.51. The stock has had a couple of great days, gaining 10.11% over the last week.

17. Maxim Integrated Products Inc. (MXIM): Designs, develops, manufactures, and markets a range of linear and mixed-signal integrated circuits worldwide. Market cap of $7.51B. TTM P/E at 15.50 vs. industry average at 22.64. PEG at 1.07 vs. industry average at 1.58. TTM P/CF at 10.69 vs. industry average at 17.50. The stock has had a couple of great days, gaining 7.57% over the last week.

18. Semtech Corp. (SMTC): Engages in the design, development, manufacture, and marketing of analog and mixed-signal semiconductor products. Market cap of $1.58B. TTM P/E at 15.57 vs. industry average at 22.64. PEG at 1.24 vs. industry average at 1.58. TTM P/CF at 12.89 vs. industry average at 17.50. The stock is a short squeeze candidate, with a short float at 5.9% (equivalent to 6.89 days of average volume). The stock has had a couple of great days, gaining 13.7% over the last week.

Price multiples sourced from Fidelity; all other data sourced from Finviz.

Source: 18 Most Undervalued Semiconductor Stocks