RE: RE: RE: RE: RE: RE: RE: RE: So it seems ...... The philosophy behind the net earnings multiple is based on how many times over an investor thinks the company can sustain that amount of profit. If a company doesn't pay any dividends, and it's not reinvesting in the business for future growth, then all net income is paid out to shareholders (or the owner). So the valuation metric I mentioned before is valid because it considers how much profit the company would be expected to make over the life of its projects, i.e., 20 years.