Five fine number six not points them explain to you in detail no I’ll give you a very detailed explanation for . number may take some time it’s okay to invest the time today so they exam you’ll be laughing when you look at this double question now what if market does not believe in PE of. what is the market does not believe in the PE of. which means the post acquisition value may not be the one that we got just now . so let’s say the market didn’t believe it’s going to be.
so the new PE now will be calculated that the market will say this is what the market does the market does faces the new p maybe chicken maybe I’m saying is maybe ticking as a weighted average the new p may be taken as a weighted average of the two companies PE alright new p may be taken as a weighted average of the two companies p now the wait take that you can use here is two men one of it is going to be it earnings as a weighted your knees and mining is put together who’s running is mall will have more the P represented.
In the end p already can use the total market values of the two companies who always bigger they will have the underrepresented more at the end domestic earnings as a basis here so if you’re going to take earnings as a basis now we know that the earnings of the Nitrate is and tony is so we’re going to find a way to leverage all weighted-average peas plus this is going to be the weighted average concept yeah weighted-average your one with your earnings plus the other one now their earnings p/e ratio we have calculated let me just go and show you where is it now the peewee shows they have.
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