General Discussion Topics, page-96530

I'm not sure I understand your question.

The P/E will come down once SYA start selling their SC5.4% as they will be increasing their earnings (assuming the share price doesn't change). You want the P/E to be lower, so that you get more company earnings per share you buy.

eg based on above article, before NAL starts:
eg. SP 19.7 cents. SYA earns $83.69 mill (EPS = $0.0123) = 0.197 price per share / 0.0123 earnings per share = 16.02 price/earnings. So Price to Earnings ratio (P/E) is 16.02.

But just say NAL earns 3 times more now it's selling SC5.4% (I'M NOT SUGGESTING THIS IS WHAT NAL IS SELLING, JUST FOR CLARITY)
eg SP 19.7 cents, SYA earns $251.070mill (EPS = $0.0369) = 0.197 / 0.0369 = 5.15. So Price to Earnings ratio (P/E) lowers to 5.34.

We all expect that the share price won't remain the same when SYA starts earning, so the SP will go up and therefore the price of lithium being higher will increase the earnings part of the ratio and help reduce the P/E to be closer to other industry peer P/E.

BTW - when I went through fool's numbers, I think they were basing the calculation upon wrong SOI. ($83.69 mill / 6804 = $0.0123!!) I used their numbers in my calculation above, for clarity.

Hope that helps.

Also, the share market is a forward looking thing. So people are not buying based on what it's worth today but rather what they anticipate it will be worth when they want to sell. Obvs.