Andrew, There are 87.4 shares - at 35 cents the market cap is...

Andrew,

There are 87.4 shares - at 35 cents the market cap is $31 million.

Price to earnings are not calculated on EBITDA - it's calculated on NPAT. NPAT is around $7.5-$8 mil thus a PE of around 4 on current prices.

EBITDA : EV is more useful to analyse a company like VEI. The enterprise value for VEI is $80 mil debt + $31 mil equity - $111 million. EBITDA is $23.5 mil thus
EBITDA:EV is 4.7.

Many companies, even good ones, are priced on EBITDA of 5-6.

VEI deserves to trade at a discount due to its state of indebtness, and the increased risk of a capital raising post the latest announcement. If VEI's bankers feel they are running to close to the edge, they will force a capital raising. Any perceived discount to value would evaporate instantly should this occur imo.