?the value of a company is based on future cash flow not...

?the value of a company is based on future cash flow not accounting figures. Amortisation, depreciation etc are only relevant to the extent they effect tax impact on cash flows.?

Huge capex is relevant and a cash expense. It is because the assets have a long life that they are have the average cost worked out over a large time span. The costs are real, as plant deteriorates, needs replacing or updating etc. Just as you buy a car, it also looses value over time, and that real cost should be matched against income to arrive at a true profit.

There are about 7 ways of valuing a coy on a PE ratio, but some of you are getting ahead of yourselves and are using a method that is applicable to a coy generating profits, and in production to use a PE. The plant has not been commissioned and proven there is no risks in production yet. The values being used here on a PE multiple and 22ktpa are values of what the share price could be in 2 years time, not now. So in short, PE is not applicable to todays price, but only a guide to what it could be in 2 years time, and there are many variables between then and now..