Zacks.com featured highlights include EnerSys, MRC Global, KT Corp, Brookfield Infrastructure Partners and JinkoSolar

For Immediate ReleaseChicago, IL – February 13, 2025 – Stocks in this week’s article are — EnerSys ENS, MRC Global Inc. MRC, KT Corp. KT, Brookfield Infrastructure Partners L.P. BIP and JinkoSolar Holding Co., Ltd. JKS5 Value Stocks with Exciting EV-to-EBITDA Ratios to Snap Up NowThe price-to-earnings (P/E) ratio is broadly considered the yardstick for evaluating the fair market value of a stock. It is preferred by many investors while handpicking stocks trading at attractive prices. However, even this universally used valuation multiple is not without its limitations.While P/E is by far the most popular equity valuation ratio, a more complicated metric called EV-to-EBITDA does a better job of valuing a firm. Often viewed as a better substitute to P/E, this ratio offers a clearer picture of a company’s valuation and its earnings potential.EnerSys, MRC Global Inc., KT Corp., Brookfield Infrastructure Partners L.P. and JinkoSolar Holding Co., Ltd. are some stocks with impressive EV-to-EBITDA ratios.Is EV-to-EBITDA a Better Substitute to P/E?EV-to-EBITDA is essentially the enterprise value (EV) of a stock divided by its earnings before interest, taxes, depreciation and amortization (EBITDA). EV is the sum of a company’s market capitalization, its debt and preferred stock minus cash and cash equivalents. EBITDA, the other component of the multiple, gives a better idea of a company’s profitability as it removes the impact of non-cash expenses like depreciation and amortization that reduce net earnings. It is also often used as a proxy for cash flows.Just like P/E, the lower the EV-to-EBITDA ratio, the more attractive it is. A low EV-to-EBITDA ratio could signal that a stock is potentially undervalued. EV-to-EBITDA takes into account the debt on a company’s balance sheet, which the P/E ratio does not. Due to this reason, EV-to-EBITDA is generally used to value the potential acquisition targets as it shows the amount of debt the acquirer has to assume. Stocks boasting a low EV-to-EBITDA multiple could be seen as attractive takeover candidates.Another shortcoming of P/E is that it can’t be used to value a loss-making firm. A company’s earnings are also subject to accounting estimates and management manipulation. On the other hand, EV-to-EBITDA is difficult to manipulate and can also be used to value loss-making but EBITDA-positive companies. EV-to-EBITDA is also a useful tool in measuring the value of firms that are highly leveraged and have a high degree of depreciation. It can be used to compare companies with different levels of debt.But EV-to-EBITDA has its limitations, too. The ratio varies across industries (a high-growth industry typically has a higher multiple and vice versa) and is usually not appropriate while comparing stocks in different industries, given their diverse capital requirements.A strategy solely based on EV-to-EBITDA might not yield the desired results. However, you can club it with the other major ratios in your stock-investing toolbox, such as price-to-book (P/B), P/E and price-to-sales (P/S) to screen value stocks.Here are our five picks out of the 17 stocks that passed the screen:EnerSys engages in the manufacturing, marketing and distribution of various industrial batteries. This Zacks Rank #1 stock has a Value Score of A.EnerSys has an expected earnings growth rate of 19.3% for fiscal 2025. The consensus estimate for ENS’ fiscal 2025 earnings has been revised 12.4% higher over the last 60 days.MRC Global is one of the leading distributors of pipes, valves and fittings, and related products and services. This Zacks Rank #1 stock has a Value Score of A. You can see the complete list of today’s Zacks #1 Rank stocks here.MRC Global has an expected earnings growth rate of 26.3% for 2025. The consensus estimate for MRC’s 2025 earnings has been revised 4.2% higher over the last 60 days.KT is the biggest telecommunications operator in the Republic of Korea. This Zacks Rank #1 stock has a Value Score of A.KT has an expected earnings growth rate of 211.4% for 2025. The Zacks Consensus Estimate for KT's 2025 earnings has been revised 7.9% upward over the past 60 days.Brookfield Infrastructure Partners owns and operates high-quality, long-life assets in the utilities, transport, midstream and data businesses in North and South America, Asia Pacific and Europe. This Zacks Rank #2 stock has a Value Score of A.Brookfield Infrastructure has an expected year-over-year earnings growth rate of 10.6% for 2025. The Zacks Consensus Estimate for BIP’s 2025 earnings has been revised 3.3% upward over the last 60 days.JinkoSolar is one of the leading solar module manufacturers, distributing its solar products to a diversified international utility, commercial and residential customer base globally. This Zacks Rank #2 stock has a Value Score of A.JinkoSolar has an expected year-over-year earnings growth rate of 1,125% for 2025. JKS’ earnings beat the Zacks Consensus Estimate in three of the trailing four quarters. In this time frame, it has delivered an earnings surprise of roughly 529.3%, on average.You can get the rest of the stocks on this list by signing up now for your 2-week free trial to the Research Wizard and start using this screen in your own trading. Further, you can also create your own strategies and test them first before taking the investment plunge.The Research Wizard is a great place to begin. It's easy to use. Everything is in plain language. And it's very intuitive. Start your Research Wizard trial today. And the next time you read an economic report, open up the Research Wizard, plug your finds in, and see what gems come out.Click here to sign up for a free trial to the Research Wizard today.For the rest of this Screen of the Week article please visit Zacks.com at: https://www.zacks.com/stock/news/2414248/5-value-stocks-with-exciting-ev-to-ebitda-ratios-to-snap-up-now?art_rec=quote-stock_overview-zacks_news-ID01-txt-2414248Zacks Investment Research is under common control with affiliated entities (including a broker-dealer and an investment adviser), which may engage in transactions involving the foregoing securities for the clients of such affiliates.Contact: Jim GiaquintoCompany: Zacks.comPhone: 312-265-9268Email: pr@zacks.comVisit: https://www.zacks.com/Zacks.com provides investment resources and informs you of these resources, which you may choose to use in making your own investment decisions. Zacks is providing information on this resource to you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer.Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report JinkoSolar Holding Company Limited (JKS): Free Stock Analysis Report Brookfield Infrastructure Partners LP (BIP): Free Stock Analysis Report KT Corporation (KT): Free Stock Analysis Report MRC Global Inc. (MRC): Free Stock Analysis Report Enersys (ENS): Free Stock Analysis ReportTo read this article on Zacks.com click here.Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks