Sorry that should be $107.4 earnings for the full year not $104.7. The PE is correct though
Simpliest way to look at it is market cap divided by earnings Market Cap £510m x 1.65 = $842m Earnings Half year = $53.7m x 2 for the full year would = $104.7m $842/104.7 = PE 7.84
Current Market Cap = £550m 2014 Q1 Rev = £36m ($60.7 reported divided by 1.7) 2013 Profit margin = 44% £36m x44% = £16m estimated earnings for Q1 Annualised with no growth on Q1 = £16m x 4 = £64m Market Cap of £550m divided by a very conservative estimate of 2014 earnings of £64m = an earnings multiple of 8.6 = CHEAP!