Drummnutt, you can hide information in NPAT as easily as EBIT,...

Drummnutt, you can hide information in NPAT as easily as EBIT, creative accounting will always exist.

My point was purely regarding your comparison of EV vs NPAT. You should always use EBIT which comparing to EV, which is why your numbers and valuation of PBG are incorrect, I would not like to see you short PBG and loose money bases your ratios.

To explain more clearly: If you buy the entire company for the Mkt Cap then repay all of the debt (which will be the Enterprise Value of the company) Your net profit will be the EBIT. Grainted you will still pay tax, but this is why you always used EBIT when comparing against the EV.

If you compare to EBTDA this is the cash earnings of the company which can be used as a guide for the net cash return on the investment which is why this number is uesd. Cash is King.

If you are using the Mkt cap Vs NPAT this is the PE value, which is a correct tool.