Aug 22, 2011 (SmarTrend(R) News Watch via COMTEX) -- Below are the five companies in the Communications Equipment industry with the lowest Enterprise Value (EV) to Forward EBITDA ratios. EV/Forward EBITDA is an important metric used in valuing comparable companies and is based on estimated cash flow. It is capital structure neutral and generally the lower the ratio, the more undervalued the company is believed to be.

Telestone Technologies (TSTC.NSDQ) has the lowest with EV/Forward EBITDA of 0.99x; Cogo Group (NASDAQ:COGO - Snapshot Report) is next with EV/Forward EBITDA of 1.03x; and ORBCOMM (NASDAQ:ORBC - Snapshot Report) has the next lowest with EV/Forward EBITDA of 1.62x.

Oclaro (NASDAQ:OCLR - Snapshot Report) follows with EV/Forward EBITDA of 1.92x and Veraz Networks (NASDAQ:VRAZ) rounds out the group with EV/Forward EBITDA of 2.28x.

SmarTrend currently has shares of Oclaro in an Downtrend and issued the Downtrend alert on March 10, 2011 at $13.04. The stock has fallen 75% since the Downtrend alert was issued.

Source:zacks