"one doesn't look at the P/E ratio for asset rich cash poor...

"one doesn't look at the P/E ratio for asset rich cash poor companies ." For early starts maybe. But Lynas is an older company with good profits in FY 2022. Those profits have declined 97% in just 3 years. PE is relevant for a company this old that did have acceptable profits.

Evey one on this board is very concerned with REE prices. Want to see Lynas do heavies where prices are much Beter. Why? By wanting higher REE prices they are saying PE is important.

1. Beter prices means higher revenues
2. Higher revenues mean higher profits
3. Profits divided by number of shares is higher EPS. Share count changes slowly so this just relates earnings to your shares. It is used in all reports because it is stable
4. Then because the SP fluctuates it is nice to relate what a share cost back to Earnings so divide EPS into Share price. = PE

So it all comes back to Price of what is sold. Any one that worries about REE price then says P/E is unimportant is disagreeing with themselves. Show where PE is not directly related to REE price. PE just takes # of Shares and Share price into consideration. I will quickly stop mentioning PE. If anybody can explain why sell price of goods and profits are not important. The rest is just math using numbers from stock market.

Lynas PE to day is 160, This is more than 5 X the ASX. People like to say this is unimportant to discount the 5 X plus discrepancy with its peers. Can they explain why? I don't think so they say its old school casually and never say why. With absolutely no reason as to why it does not apply as much to day as when the first stock exchange was started 400 years ago.

Dividends raise PEs. They make the stock more valuable because of the steady cash flow. They lower profits because they are paid from profits. The dividend rate for ASX is just over 4% Lynas 0%.

• Can anybody explain why REE Price is important, and PE is not?
• I can explain clearly why I think PE is important can anybody show why it is not?
• Saying it is old school is easy, proof is needed.

Note I do not like dividends for growing companies. They are paid from profit lowering cash for needed expansion. This is why So many American growth companies do not pay dividends for 20 or more years why they are growing. For example APPLE and INTELL.