The PE figures you quoted appear to be from the 2007 Fin Report for OXR, BHP etc.
Forward earnings for BHP suggest that its PE is more like 9 atm, some on the BHP thread contend it is even lower & that $Oil has not been properly factored in.
The Scheme booklet [p97] listed earnings for the merged OXR_ZFX company for the year ended Dec 31, 2007 as $850m. With a combined share count of approx 3b & a SP of $2.20 this means the current market cap is just $6b & that the current PE is therefore just $6b/0.85b = approx 7.
IMHO at a PE=7 the merged company is very cheap - even cheaper than BHP which IMHO is also a bargain atm.
Disclosure - I hold both BHP & OXR but not RIO. I guess people should contemplate whether they expect the merged company to earn more / less in future?
4YIO - NFA
OXR Price at posting:
0.0¢ Sentiment: LT Buy Disclosure: Held
