With so much interest in value investing, and market conditions that lean in favor of value (right now anyway), Morgan Stanley (NYSE:MS) regularly uses two screens specifically aimed at finding quality stocks that may be underpriced.
Joel Greenblatt screen
The Joel Greenblatt screen, inspired by the renowned value investor, focuses on high-quality non-financial companies, and tries to determine which ones are currently cheap by looking for low EV/EBITDA ratios and a high ROCE.
The Greenblatt screen found four companies overweight. British energy firm Afren Plc (LON:AFR) (OTCMKTS:AFRNY), with a market cap of $2.33 billion and trading around £1.35, has an EV/EBITDA of 2.8 and ROCE percentage of 24.2. Italian energy firm Eni SpA (BIT:ENI) (NYSE:E) has an $84...
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