thank you mongombolo.A PE ratio is all about how long it will...

thank you mongombolo.

A PE ratio is all about how long it will take to pay me back. So there is no point to looking back... because past earnings will not be coming my way.

That is why it is essential to look at the upcoming 12 months for guidance (it also gives a clearer picture on the growth of a Co).

So, based on oil @ $80, coal at half price, copper at a 25% discount... BHP is at a PE of 16.8.

But Iron ore has doubled since last year, as has oil, in fact metals across the board have spectacularly risen. So what is the point of making any decisions based on old prices?

i wont be getting paid at old prices (eps), Ill be getting paid at the new higher prices.

therefore, as you said, PE is ($46.66 / $4.298eps09 =) 10.86x