You people make things too complicated.
The following doesn't account for dividend payouts. I assume the ROE numbers from CommSec have accounted for this.
ROE (Return on Equity)
---------------------------- x EQPS (Equity per share)
pRR (pre-tax Rate of Return)
From CommSec EPS and Financial data,
In 2006/7:
0.13
---------------------- x 2.416
0.0725 (RBA cash rate)
= $4.33 FV
So 2007/8:
6.40 eps
--------
23.0 eps
= 0.278 x 4.33
= $1.20 FV
So 2008/9:
7.40 eps
-------- x 4.33
23.0 eps
= $1.39 FV
So 2009/10:
9.8
--- x 4.33
23
= $1.84 FV