RE:RE:NEWS- DNG Earns Net Income of US$ 0.7M in Q3-2015Um, let's try some simpler math. If you're looking to calculate the forward price/earnings ratio by assuming that the $700,000 earnings in the 3rd quarter is a good indicator of the next four quarters, you would get 2.8 millions in expected annual earnings. Divide that by the total number of shares outstanding (let's round up to 40 mil for the sake of argument) and you get expected earnings per share of $.07. At today's closing price of 1.55/share that gives a P/E ratio of just slightly more than 22.
Mathematically speaking, of course, any difference in P/E ratio between Apple and Dynacor may reflect the fact that Apple is not a gold milling company engaged in the proving up of resources with potentially explosive upside for investors. This can be expressed by the formula:
apples ≠ (gold)oranges.
ULarge