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Innovative Small ETF Firms Challenging the Big Players

Excess Returns

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The Enterprise Value Is the Market Capitalization of a Company

The strategy itself is very, very simple. It looks for these companies that are cheap on an acquirers multiple basis. And then the way that you determine whether it is cheap or expensive is to compare it to the enterprise value. We're looking for companies that have got more cash than debt or they don't have any of these hidden parts. Then we compare the two together so we can get an apples to apples comparison of all the companies in the market.

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