Apollo Global Management, Inc.

Where It Passes

Where It Falls Short

• Growth0% pass✓ 3✗ 10▾

  No clean pass — all 8 investors flag at least one growth criterion

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthN/A (no inventory)

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency5/6 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth22.7%

  ✓Ackman>= 5%

  Positive EPS Growth Frequency

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR68.6%

  ✓SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)

  ✗Buffett> 10%

  ROIC - WACC

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)

  ✗Greenblatt> 25%

  Current Ratio Change YoY

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.07x -> 0.07x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5

  Return on Invested Capital

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=unavailable; FY2024: ROIC=unavailable; FY2025: ROIC=unavailable

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROIC

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)

  ✗SleepROIC > 12% in a majority of years
• Valuation8% pass✓ 3✗ 25▾

  12 of 13 flag APO's valuation — Graham, Lynch, Greenblatt +9 more

  Price / 3-yr avg EPS17.5x

  ✗Graham<= 15x

  Price-to-Book Ratio3.1x

  ✗Graham<= 1.5x

  P/E x P/B53.60

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value10.9%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=10.9%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS22.3x

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)9.9x

  ✗Dreman< 8x

  Price / Book Value per Share3.1x

  ✗Dreman< 1.2x✗Templeton< 1.5x✗SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessP/E=22.3x, OE Yield=6.9%

  ✓MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldP/E=22.3x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/E=22.3x, P/B=3.1x

  ✗MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic Value-16.8% (IV=$105.75 vs Price=$123.47)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per Share

  ✗Ackman<= 25

  Price vs. Trailing Low118% of trailing low ($104.60)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-1.26%; #3448/6340 (top 54.4%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+0.2188; #4097/6449 (top 63.5%)

  ✗AsnessTop 30% of eligible cross-section

  Price / Diluted EPS22.3x

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per Share4.46x

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+0.4227; #2851/5247 (top 54.3%)

  ✗OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-4.07%; #3078/6202 (top 49.6%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Profitability13% pass✓ 8✗ 27▾

  14 of 16 flag APO's profitability — Graham, Buffett, Lynch +11 more

  Positive EPS (10 years)5/7 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)5/7 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)19.3%

  ✓Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-5.8%

  ✗Lynch> 15%

  EBIT / Enterprise Value10.9%

  ✓Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=10.9%, ROC=None

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets0.76%

  ✓PiotroskiROA > 0

  ROA Change YoY1.21% -> 0.76% (delta: -0.45%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=1.57%, ROA=0.76%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue9.9%

  ✓Dreman>= 8%

  Net Income / Shareholders' Equity-5.8%

  ✗Dreman> 12%

  Margin of SafetyP/E=22.3x, P/B=3.1x

  ✗PabraiP/B < 1.5 or P/E < 15

  Return on Equity25.8% (3-yr avg)

  ✓AkreROE > 20% (3-year avg)

  Discount to Intrinsic Value-16.8% (IV=$105.75 vs Price=$123.47)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency5/6 years positive

  ✗MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-5.8%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trend

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-1.26%; #3448/6340 (top 54.4%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-5.76%; #3242/5226 (top 62.0%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0228; #1590/5884 (top 27.0%)

  ✓AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years5/6 years positive

  ✓Schloss>= 70% positive over 5-10 observed years (app rule)
• Cash Flow20% pass✓ 3✗ 9▾

  8 of 10 flag APO's cash flow — Buffett, Lynch, Dreman +5 more

  Free Cash Flow Proxy

  ✗BuffettPositive and growing

  FCF Positive and Growing

  ✗LynchPositive and growing

  Operating Cash Flow$7.2B

  ✓PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=1.57%, ROA=0.76%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)9.9x

  ✗Dreman< 8x

  P/E or FCF YieldP/E=22.3x

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive

  ✗MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap

  ✗Ackman>= 4%

  Price / FCF per Share

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency5/6 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures

  ✗Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization

  ✗OshaughnessyTop 10% of eligible cross-section
• Debt & Leverage25% pass✓ 5✗ 10▾

  9 of 12 flag APO's debt & leverage — Graham, Buffett, Lynch +6 more

  Total Debt / Shareholders' Equity0.92

  ✗Dreman< 0.8✓Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✓SchlossD/E < 1.00x

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 0.92, IC: 5.1x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity0.92

  ✗Lynch< 0.33

  Cash - Long-term Debt$7.0B

  ✓LynchPositive preferred

  LT Debt / Total Assets Change2.80% -> 2.90%

  ✗PiotroskiDecreased YoY

  Current Assets / Current Liabilities

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Debt Levels0.92

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=5.1x, D/EBITDA=2.7x

  ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity0.92

  ✓Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-0.9248; #3132/4210 (top 74.4%)

  ✗AsnessTop 30% of eligible cross-section
• Verdicts29% pass✓ 4✗ 10▾

  Split decision: 10 FAIL · 4 PASS · 2 NEUTRAL

  Overall verdict

  ✗GrahamFAIL (1/9)✗BuffettFAIL (1/9)✗LynchFAIL (2/7)•GreenblattNot ranked✓PiotroskiPASS (F-Score 4)✗DremanFAIL (2/11)✓MungerPASS (2/4)✗PabraiFAIL (0/3)✗AkreFAIL (1/6)✗MarksFAIL (1/5)✓AckmanPASS (4/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)•AsnessNEUTRAL (Not ranked)✗NeffFAIL (2/6)✗SchlossFAIL (3/7)•OshaughnessyNEUTRAL (Not ranked)
• Valuation models40% pass✓ 2✗ 3▾

  Models split on APO at $123.47 — fair values range $70.93–$307.53

  Graham fair value$70.93

  ✗Graham-74.1% margin vs $123.47

  Greenblatt fair value$95.90

  ✗Greenblatt-28.7% margin vs $123.47

  Dreman fair value$105.75

  ✗Dreman-16.8% margin vs $123.47

  Pabrai fair value$139.19

  ✓Pabrai+11.3% margin vs $123.47

  Akre fair value$307.53

  ✓Akre+59.9% margin vs $123.47