Ubid, i would strongly suggest you re-read the revised King report. If you use his figures regarding net earnings , shares on issue etc you will see the flaw. EPS are only approximately 20 cents in year one. And yet using NPV techniques he has ascribed a share value of $5.47 in year one. That translates to a p/e of around 27. Yes 27. And yet in the same report he talks about BHP trading on a p/e of 12. Think about it.
Ubid, i would strongly suggest you re-read the revised King...
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