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Are you interested in technology stocks that could grow to great heights over the long term? Would you be more interested if you could get those stocks for a discount today? For ideas on how to start your search, we ran a screen you may find helpful.

The forward P/E is a price multiple valuation metric, which is similar to the current P/E ratio, except that it uses the forecasted earnings instead. While this number might not be as accurate because it uses "forecasted" numbers, it does offer the benefit of illustrating analysts' expectations of a firm. If the market believes that earnings will grow moving forward, then the forward P/E should be lower than the current P/E. Financial Leverage, also known as the Equity Multiplier, illustrates how a firm is financing its assets. The lower the number the more a firm is financing its assets internally through stockholder equity. The higher this metric is the more the firm is relying on debt to finance its assets.

The Price/Earnings ratio is one of the most commonly used price-multiple metrics. Often, EPS from the last four quarters is used to derive this number. A firm that has a high P/E ratio generally indicates that investors have high expectations of the firm relative to future earnings growth. By the opposite token, investors generally have lower expectations of a firm with a low P/E ratio. A firm that holds a P/E below 10 could be viewed as having "value investment" potential. One thing to remember is that EPS is an accounting measure that could be potentially manipulated. Thus the P/E is only as good as the quality of the earnings.

Return on Assets [ROA] illustrates how much a company is generating in earnings from its assets alone. This metric gives investors a picture of how profitable the company is relative to the assets in current possession. As well, it lets investors see how efficient and effective management is at generating earnings from the company's assets. While most management teams can probably make money by throwing money at an issue very few can make very large profits with little investment.

Return on Equity [ROE] is one way to identify great potential names relative to profitability. This ratio illustrates the percentage return on shareholder equity. As well, this metric segments the company into operational efficiency, asset use efficiency, and financial leverage. Why does this matter? Simply put, it allows investors to get a real picture of how the company is generating these returns and helps identify parts of the company that may be underperforming.

We first looked for technology stocks. We then looked for companies with a low price-multiple premium (forward P/E<10)(P/E<10). We then looked for companies that have strong profitability relative to their asset base (ROA [TTM]>10%)(ROE [TTM]>30%). We did not screen out any market caps.

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

1) Spreadtrum Communications Inc. (NASDAQ:SPRD)

Sector:Technology
Industry:Semiconductor - Broad Line
Market Cap:$883.12M
Beta:1.60

Spreadtrum Communications Inc. has a Forward Price/Earnings Ratio of 8.33, a Price/Earnings Ratio of 7.76, a Return on Assets of 21.64%, and a Return on Equity of 48.94%. The short interest was 5.97% as of 06/17/2012. Spreadtrum Communications, Inc., a fabless semiconductor company, engages in the design, development, and marketing of mobile chipset platforms for smartphones, feature phones, and other consumer electronics products in the People's Republic of China and internationally. The company offers a portfolio of integrated baseband processor solutions that support various wireless communications standards, including global system for mobile communication (GSM), general packet radio service (GPRS), enhanced data rates for GSM evolution (EDGE), time division synchronous code division multiple access (TD-SCDMA), high speed packet access (HSPA), and long term evolution (LTE), and various multimedia capabilities.

2) Vonage Holdings Corporation (NYSE:VG)

Sector:Technology
Industry:Diversified Communication Services
Market Cap:$409.71M
Beta:1.68

Vonage Holdings Corporation has a Forward Price/Earnings Ratio of 6.96, a Price/Earnings Ratio of 1.07, a Return on Assets of 99.00%, and a Return on Equity of 373.43%. The short interest was 4.92% as of 06/17/2012. Vonage Holdings Corp. provides broadband communication services in the United States, Canada, and the United Kingdom. The company offers voice and messaging services through session initiation protocol (SIP) based voice over Internet protocol network.

3) Changyou.com Limited (NASDAQ:CYOU)

Sector:Technology
Industry:Multimedia & Graphics Software
Market Cap:$1.07B
Beta:-

Changyou.com Limited has a Forward Price/Earnings Ratio of 4.03, a Price/Earnings Ratio of 4.31, a Return on Assets of 36.06%, and a Return on Equity of 47.91%. The short interest was 1.16% as of 06/17/2012. Changyou.com Limited develops and operates online games in the People's Republic of China. The company is primarily involved in the development, operation, and licensing of massively multi-player online games (MMOGs), which are interactive online games that might be played simultaneously by various game players, and Web-based games, which are played over the Internet using a Web browser.

4) Shanda Games Limited (NASDAQ:GAME)

Sector:Technology
Industry:Multimedia & Graphics Software
Market Cap:$1.19B
Beta:-

Shanda Games Limited has a Forward Price/Earnings Ratio of 5.05, a Price/Earnings Ratio of 5.89, a Return on Assets of 16.25%, and a Return on Equity of 32.85%. The short interest was 0.76% as of 06/17/2012. Shanda Games Limited, an online game company, develops, sources, and operates online games in the People's Republic of China. It also licenses its games to third parties. The company offers massively multi-player online role-playing games (MMORPGs) in various genres, including martial arts adventure, fantasy, strategy, and historical events; and advanced casual games in battle, fighting, side-scrolling combat, racing, turn-based, action, and shooting genres.

5) GT Advanced Technologies Inc. (GTAT)

Sector:Technology
Industry:Semiconductor - Specialized
Market Cap:$571.58M
Beta:1.64

GT Advanced Technologies Inc. has a Forward Price/Earnings Ratio of 3.96, a Price/Earnings Ratio of 3.29, a Return on Assets of 16.24%, and a Return on Equity of 68.75%. The short interest was 23.42% as of 06/17/2012. GT Advanced Technologies Inc. provides polysilicon production technology and multicrystalline ingot growth systems, and related photovoltaic (PV) manufacturing services for the solar industry worldwide. It also offers sapphire growth systems and material for the LED and other specialty markets. The company's principal products comprise chemical vapor deposition reactors and related equipment used to produce polysilicon; directional solidification furnaces and related equipment used to cast multicrystalline silicon ingots, which are used to make PV wafers; advanced sapphire furnaces used to crystallize sapphire boules that are used to make sapphire wafers; and sapphire material primarily used to make various products, such as epitaxial-ready wafers.

6) Telecom Argentina S.A. (NYSE:TEO)

Sector:Technology
Industry:Diversified Communication Services
Market Cap:$1.97B
Beta:1.03

Telecom Argentina S.A. has a Forward Price/Earnings Ratio of 2.82, a Price/Earnings Ratio of 3.55, a Return on Assets of 17.78%, and a Return on Equity of 31.84%. The short interest was 1.41% as of 06/17/2012. Telecom Argentina S.A., together with its subsidiaries, provides telecommunication services to residential customers, businesses, and governmental agencies in Argentina and internationally. It operates in two segments, Fixed Telephony and Mobile Services. The Fixed Telephony segment provides local fixed telephony, public telephony, domestic and international long-distance telephony, domestic and international point-to-point link, domestic and international telex, data transmission, videoconferencing, and broadcasting signal services; additional services, including call forwarding, call waiting, three-way calling, itemized billing, and voicemail; and Internet access in Argentina.

7) RDA Microelectronics, Inc. (NASDAQ:RDA)

Sector:Technology
Industry:Semiconductor Equipment & Materials
Market Cap:$419.08M
Beta:-

RDA Microelectronics, Inc. has a Forward Price/Earnings Ratio of 6.02, a Price/Earnings Ratio of 7.83, a Return on Assets of 25.60%, and a Return on Equity of 33.32%. The short interest was 3.68% as of 06/17/2012. RDA Microelectronics, Inc., a semiconductor company, designs, develops, and markets radio-frequency and mixed-signal system on chip integrated circuits for the cellular, broadcast, and connectivity markets. Its products include power amplifiers, radio frequency front-end modules, Bluetooth system-on-chips, FM radio receivers, set-top box tuners, transceivers, analog mobile television receivers, China multimedia mobile broadcasting television receivers, walkie-talkie transceivers, LNB satellite down converters, and WiFi + Bluetooth + FM three-in-one combo chips. The company's products are incorporated into mobile handsets, set-top boxes, MP3 players, and other wireless and consumer electronic devices.

8) Seagate Technology PLC (NASDAQ:STX)

Sector:Technology
Industry:Data Storage Devices
Market Cap:$10.02B
Beta:2.36

Seagate Technology PLC has a Forward Price/Earnings Ratio of 2.49, a Price/Earnings Ratio of 5.42, a Return on Assets of 21.46%, and a Return on Equity of 63.89%. The short interest was 6.10% as of 06/17/2012. Seagate Technology Public Limited Company designs, manufactures, markets, and sells hard disk drives for enterprise, client compute, and client non-compute market applications worldwide. The company's products are used in enterprise servers, mainframes, and workstations; desktop and notebook computers; digital video recorders; personal data backup systems; portable external storage systems; and digital media systems. It also provides data storage services for small to medium-sized businesses, including online backup, data protection, and recovery solutions; and ships external backup storage solutions under its Free Agent Go and Free Agent Go Flex product lines.

*Company profiles were sourced from Finviz. Financial data was sourced from Finviz.

Source: 8 High Earning Technology Stocks Trading For A Discount