The Globe and Mail attempts to identify undervalued energy stocks in its Thursday, Nov. 6, edition. The Globe's Craig McGee writes in the Number Cruncher column that it has been a roller-coaster ride for energy stock investors this year -- the S&P/TSX Composite Energy Index was up as much as 22 per cent for 2014 at the end of June, but has fallen almost 27 per cent since then. Mr. McGee only considered energy companies with an enterprise multiple (EM) of less than 10. EM is a comparison of total enterprise value (EV) to earnings before interest, taxes, depreciation and amortization (EBITDA) for the latest four quarters. Energy's EV/EBITDA peaked at the end of June but has since fallen 16 per cent. Reported EBITDA, however, has actually risen 6 per cent over that period. Compared with other sectors, energy appears to be relatively undervalued. Mr. McGee only considered companies with positive estimated year-over-year cash flow growth for 2015. As well, the three-month revision of upcoming year's consensus cash flow estimate needed to be positive. Mr. McGee's recommended energy stocks are EnCana, Essential Energy Services, Total Energy Services and Cardinal Energy.