Earning Yield comparison for APOLLO and LONBISC

Below tables present the Earning Yield Calculations for APOLLO and LONBISC.

APOLLO

Share Price	4.85
NOSH	80,000
Market Cap, E	388,000
Minority Interest	0
Total Debt	0
Excess Cash	64,863
EV	323,137
EBIT	42,449
EV/EBIT	7.61
EY = EV/EBIT	13.14%

LONBISC 

Share Price	0.83
NOSH	142,224
Market Cap, E	118,046
Minority Interest	64,205
Total Debt	263,076
Excess Cash	-91,819
EV	537,146
EBIT	31,004
EV/EBIT	17.33
EY = EV/EBIT	5.77%

The enterprise value for APOLLO and LONBISC is 323,137 and 537,146 respectively. 

APOLLO is trading at 7.6 times its Ebit (Earnings yield 13.41%) while LONBISC is value at a higher price with a 17.3 times of EV/EBIT (EY of 5.77%) eventhought the business quality of LONBISC is poorer than APOLLO as presented by following analysis:-

• Income Statement Analysis - APOLLO vs LONBISC 
• Balance Sheet Analysis - APOLLO vs LONBISC  
• DuPont Analysis - APOLLO vs LONBISC 
• ROIC - APOLLO vs LONBISC 

The numbers is telling us that there is a good company selling at cheap price, and a lousy company selling at an exorbitant price. Do you able to name it?


References:-

• Total Enterprise Value (TEV) and Earning Yields (EY)
• Magic Formula - Joel Greenblatt