"It depends how you view the company. If you see it as a series...

"It depends how you view the company.
If you see it as a series of cash flows, then for the most part operational cash flow is in line with ebitda."

@Klogg,

Yes, you are right; because NVT is a strong generator of Operating Cash Flows which, combined with the fact that it is a capital-light business, means that a high proportion of its EBITDA drops through to the Free Cash Flow generation line.

As it happens, because of not all "EBITDA's" are made equal, when I assess businesses for investment, it is on the very basis of Free Cash Flow that I use (because FCF is the catch-all determinant of a company's true valuation).

And even on that basis, NVT does not appear to be to me to be undervalued.

Here is the way I - crudely - view NVT's FCF flows, and the FCF Yield metrics for the company:

EBITDA = $160m
Less: Interest = $8m
Less: Tax = $45m
=> Operating Cash Flow = ~$110m

Less: Capex = $20m

=> Free Cash Flow (before servicing on capital providers) = $90m

At the current share price, NVT's Markt Cap is ~$1.50bn
Net Debt is around $200m

Therefore, EV = $1.70bn

So, FCF Yield = 6.0% on Market Cap and 5.3% on Enterprise Value