Top Pick James Telfser"Our valuation methodology will penalize a stock for having excessive leverage which we have done for Concordia but even assigning our most conservative valuation multiple against our internal EPS projection, we believe the shares are at least 50 per cent undervalued. At 5x 2016 EPS, the stock is trading at a multiple reserved for companies going out of business, which is certainly not the case. " IMO, Debt risk should be adjusted for cash flow forecast, not applied uniformly across all businesses.