Ann: Conversion of Redeemable Convertible Preference Shares, page-44

You are correct EPS (using net profits) and a pe multiple are not the only way to value a company - NPV is one of the best but has it issues when deciding the discount rate. EPS and a PE mulitple however are used on the ASX for a reason- ironically our valuations are similiar IJ - fully diluted I have it around 19 cents -based on a net profit after tax and interest of 43m and a pe of 8.8 - less dilution then the value goes up- which is the reason why the directors need to answer some questions from the owners......