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Do you consider yourself a value investor? For ideas on how to search for potentially undervalued stocks, we ran a screen.

We screened the biotech industry for stocks that appear undervalued relative to 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. The higher the ratio, the more undervalued the company appears.

Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the 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.

1. Cambrex Corporation. (NYSE:CBM): Provides products and services for the development and commercialization of new and generic therapeutics. Levered free cash flow at $30.10M vs. enterprise value at $277.85M (implies a LFCF/EV ratio at 10.83%).

2. China Biologic Products, Inc. (NASDAQ:CBPO): Engages in the research, development, manufacturing, and sale of plasma-based pharmaceutical products. Levered free cash flow at $18.64M vs. enterprise value at $165.95M (implies a LFCF/EV ratio at 11.23%).

3. Obagi Medical Products, Inc. (NASDAQ:OMPI): Develops and markets topical aesthetic and therapeutic prescription skin care systems. Levered free cash flow at $21.28M vs. enterprise value at $201.38M (implies a LFCF/EV ratio at 10.57%).

4. PDL BioPharma, Inc. (NASDAQ:PDLI): Engages in the management of antibody humanization patents and royalty assets, which consist of Queen et al. Levered free cash flow at $184.62M vs. enterprise value at $1.08B (implies a LFCF/EV ratio at 17.09%).

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

Source: 4 Biotech Stocks Undervalued By Levered Free Cash Flow