M4M 6.90% 3.1¢ macro metals limited

Time to get behind KFE!, page-15

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    I think you'll find the P/E ratio is applied to a company's profit after tax, ie after the assets employed have been amortised and write-offs taken. You have suggested applying a P/E ratio to the after tax cash flow, a measure not used by analysts.

    In the early years, a project may not generate an accounting profit but still have a healthy EBITDA.
 
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