Ann: $30m Equity Raising to Advance Sheffield Growth Strategy, page-26

I'd argue that there are several valuation metrics that sophisticated investors will look at to determine the relative attractiveness of a business operation. Some examples include earnings multiples, NPV, EPS, EV, PE ratio, dividend return (remember dividends are usually franked if tax has been paid by the company) etc.

depending on the characteristics of the particular business and from which stand point you are trying to determine returns or value or ROI, will dictate which metrics are more useful to look at.

remember that depreciation and amortization are just book values, more relevant to work out how much tax is payable for the year, they are not cashflow effecting yearly costs. The outlay if amortisation and depreciation effectively happens at the point of Capex investment. So in this case you really need to look at Capex, debt and debt repayments as well as net profit and total earnings when determining shareholder value, hence I like the NPV number, or dividend return from KMS to SFX as a better mark of how shareholders can determine what sort of returns they can see taking current market cap into consideration.

As an aside, in my earlier post when I referenced return to shareholders I wasn't exclusively referring to dividend payments, but rather total returns including share price appreciation as a result of increasing equity assets and earning potential.

also note that the lifetime earning profile for TB is determined by which model ultimately gets implemented (stage 1 and stage 2 or just stage 1), and this will change the earnings profile and subsequent valuation metrics and ratios.