MFG in the BUY zone, page-87

too many variations are in existence when calculating PE. Foremost my PE calculation is based on future earnings not like most the Wall Street publications. It makes sense to me as it is not looking too far backwards. last year MFG financial results show three profit figures. A$ 454M before associate companies, $424m after associate companies and A$265m after fund restructure. We can definitely ignore A$265m as that fund restructure is one off. So we can debate whether we should take A$454 or $424. On $454 EPS is A$2.47 or on A$4.24 it is A$2.25. Both these figures are on FUM of A$103.5B. So if you work out on A$117B it will be A$2.72EPS or A$2.60EPS. On these numbers it is 14 to 15 range. This is just to explain why I am quoting a figure of 14. My actual calculation is for longer period of 4 years, with various other assumptions on major portfolio stocks futures and impact of A$ and for valuation based on different interest rates etc. This number is even better than what I have quoted before. But you can ignore my last sentence, for general discussion what I have described above answers your question by using just one years future profits.