Ttm earnings yield In the last 4 quarters Jemtec has produced net income of ~
$ 635k. They have no debt and a cash position of
$ 2,023,154. The market cap is ~ $ 5.59m and ex cash it's ~ 3.567 m.
earnings yield =~ 635k/3.567m =~ 17.8%
In addition to having a very high earnings yield is the combination of these earnings increasing y/y.
If these earnings grow at the risk free rate of 2.38% and a cost of equity of 10% then the company should be worth ex cash:
635k/(10%-2.38%) =~ $ 8.33m
Add the cash balance of about $2m and you have a $10+ million market cap company or almost double the current share price.
The company IMO is worth a lot more because they've proven to consistently grow net income at double digit rates.