ZFX zinifex limited

bounce: comments please, page-16

  1. 9,316 Posts.
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    Gann, you got the PE as a post dividend calculation. Now I'm assuming from that statement you have subtracted the dividend from the price? If not please explain.

    The reason I ask is that PE is the ratio of price to earnings. The dividend doesn't change the amount of earnings so if you subtracted the dividend from the price the PE must shrink not increase.

    To increase the PE as you have done you would need to increase the price, ie by adding the dividend to the current share price but then you would be arguing that the stock is not correctly priced today.



 
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