Ann: Suspension from Official Quotation, page-78

@Yeatesy
58195628

Happy discussing this. One of us is right, and whoever is wrong would like to know! So I am saying this all in good spirit.

IBG will have average annual post tax free cash flow of USD$73M, say roughly AUD $104M. Put aside dilution, to make things simple. If you valued IBG at the NPV, ie~AUD$519M (USD$363M), that'd put it on a PE ratio of 5. Now, IBG has a long way to derisk, so its not worth its full value now by any means. But when/if it is producing $104M pa post tax free cash flow, it'll be worth a truckload more than USD$363M. Why? Because that NPV only measures the extent to which the investment's returns exceed the hurdle rate, not the full return on the investment.