let’s start with the lower number in headline pre-tax profit...

let’s start with the lower number in headline pre-tax profit expectation of $50m to $60m. We can add back the $24m from Liberty’s investment losses, and $9m of other losses due to dud investments Flight Centre has made. While these losses are genuine they shouldn’t recur, so we’ll ignore them in trying to assess maintainable earnings. The $11m in Liberty restructuring expenses can also be added back under the same assumption. So we start off with a base of $94m for pre-tax earnings, or $65m after tax. That translates to a PER of less than 9