Where Is the Deep Value in Small and Micro Caps This Week?
Tuesday, September 29, 2026 · Johnny Hopkins
The Acquirer’s Multiple® Small and Micro Cap screen searches a less heavily followed part of the market, where limited analyst coverage and lower institutional ownership can sometimes allow significant valuation gaps to develop.
This week’s screen contains 200 companies, with a median Acquirer’s Multiple of approximately 9.1x. Of those, 76 trade below 8x and 40 trade below 5x.
Where the Cheapest Opportunities Are Concentrated
The sub-8x group spans several areas of the market, including:
- Banks, investment services, specialty finance and insurance
- Transportation and infrastructure services
- Energy exploration and downstream energy
- Apparel and consumer-related businesses
- Software, internet and data services
- Healthcare and biopharmaceutical companies
- Food production and machinery manufacturing
The cheapest part of the screen is spread across multiple industries rather than concentrated in a single sector.
Cheap—But Are They Producing Cash?
A low valuation becomes more interesting when it is supported by cash generation.
Among the 76 companies trading below 8x, the median free-cash-flow yield is approximately 14.6%, and 68 report a positive free-cash-flow yield. The group’s median five-year return on assets is approximately 11.9%, while 64 companies report a positive shareholder yield.
Those figures suggest that many of the statistically cheap companies are generating cash.
Why Small and Micro Caps Require Additional Research
Smaller companies can offer greater valuation discrepancies, but they can also have lower trading liquidity, more volatile earnings, concentrated customer bases and less comprehensive public information.
The Acquirer’s Multiple is a starting point for research. Investors should examine debt, cash-flow consistency, capital allocation, competitive position and whether recent earnings are unusually high.
Bottom Line
More than one-third of this week’s 200 Small and Micro Cap companies trade below an 8x Acquirer’s Multiple. The sub-8x group also has a median free-cash-flow yield of approximately 14.6%, making it a substantial pool for further research.
The complete premium screen provides company names, rankings and the underlying valuation, cash-flow, shareholder-yield and quality measures.
ACCESS ALL 4 STOCK SCREENS
In addition to our free U.S. Large-Cap 1000 Screener, subscribers receive access to the complete All Investable, Small and Micro Cap, and Canada All TSX screens—including company rankings and valuation, free-cash-flow, shareholder-yield and quality measures.