Joezzzz,It's a very basic way of looking at 2 similar companies...

Joezzzz,

It's a very basic way of looking at 2 similar companies (by activity)

With regard to EPS

LEI EPS for 2009 was $1.50, PE ratio 24 (based on $36.00 sp)
MAH EPS for 2009 was $0.03, PE ratio 21 (based on $ 0.64 sp)

However in both companies they have some large abnormal items that have distorted the PE ratios.

Forward PE ratios in my opinion should be around half of what they are currently showing.

In LEI's NPAT it included losses on MAH investment, Brisconnections, Connect East, River City Motorway and Devine. Somewhere to the tune of $250 million was in impairment of these investments.

In MAH's NPAT it included abnormal losses of approximately $40 million. This won't happen again so just add it all back to their NPAT of $17 million.

We arrive at a NPAT for 2010 of $57 million and that's only based on the fact that the abnormal expenses are eliminated in 2010.

I hear that MAH is profitable in everything they are currently operating (I guess back to the good old days?)

Expected EPS for 2010 = $57 million/734 million shares = 7.8 cents.

Forward PE = $0.64/$0.078 => 8.21

Any which way you look at it, MAH as others have stated is a little gem, you just need to be patient.