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Interested in finding stocks that may be trading below their fair value? If so, here are some ideas to get started on your search.

We ran a screen on the healthcare sector for stocks that appear undervalued relative to earnings growth, with PEG below 1, and relative to levered free cash flow, with high ratios of levered free cash flow/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.

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 should be trading higher? Use this list as a starting point for your own analysis.

List sorted by LFCF/EV.

1. WellPoint Inc. (WLP): Operates as a health benefits company in the United States. PEG at 0.9. Levered free cash flow at $3.46B vs. enterprise value at $13.84B (implies a LFCF/EV ratio at 25%).

2. Aetna Inc. (NYSE:AET): Operates as a diversified healthcare benefits company in the United States. PEG at 0.79. Levered free cash flow at $3.12B vs. enterprise value at $16.26B (implies a LFCF/EV ratio at 19.19%).

3. PDL BioPharma, Inc. (NASDAQ:PDLI): Engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. PEG at 0.62. Levered free cash flow at $146.42M vs. enterprise value at $1.13B (implies a LFCF/EV ratio at 12.96%).

4. USANA Health Sciences Inc. (NYSE:USNA): Develops, manufactures, distributes and sells nutritional and personal care products worldwide. PEG at 0.71. Levered free cash flow at $62.20M vs. enterprise value at $483.98M (implies a LFCF/EV ratio at 12.85%).

5. Cumberland Pharmaceuticals, Inc. (NASDAQ:CPIX): Engages in the acquisition, development and commercialization of branded prescription products for the hospital acute care and gastroenterology markets. PEG at 0.3. Levered free cash flow at $7.12M vs. enterprise value at $55.98M (implies a LFCF/EV ratio at 12.72%).

6. DepoMed Inc. (NASDAQ:DEPO): Develops and commercializes pharmaceutical products based on its proprietary oral drug delivery technologies in the United States. PEG at 0.14. Levered free cash flow at $28.34M vs. enterprise value at $235.45M (implies a LFCF/EV ratio at 12.04%).

7. ACADIA Pharmaceuticals, Inc. (NASDAQ:ACAD): Focuses on drug discovery and clinical development of novel treatments for central nervous system disorders. PEG at 0.22. Levered free cash flow at $4.66M vs. enterprise value at $43.62M (implies a LFCF/EV ratio at 10.68%).

*LFCF/EV data sourced from Yahoo! Finance, all other data sourced from Finviz.

Source: 7 Healthcare Stocks Undervalued By Earnings Growth And Cash Flows