The Globe and Mail attempts to identify potentially undervalued Canadian companies with momentum and earnings to reinvest in its Tuesday edition. The Globe's Craig McGee writes in the Number Cruncher column that there are pockets of the market that have been experiencing increasing expectations and building momentum. In the search for trending stocks with room to grow, Mr. McGee looked to the EMG (enterprise-multiple-to-growth) ratio. Similar to the PEG ratio, EMG compares valuations with growth levels. In this case, Mr. McGee is taking total enterprise value divided by four quarters of earnings before interest, taxes, depreciation and amortization, and dividing by the sustainable growth rate (also known as reinvestment rate) in order to take growth prospects into account. He looked for stocks with the best EMG ratio. He only considered companies with a positive three-month consensus earnings estimate revision. Earnings surprises had to be positive, so too the three-month and 12-month price change. Mr. McGee only considered firms with a market cap greater then $200-million. Stocks with sustainable growth are Dollarama, Uni-Select, Great Canadian Gaming, Martinrea International and Loblaw.