Whether one does the calculation on the basis of "per share" or...

Whether one does the calculation on the basis of "per share" or not, ultimately the ratio is the same. That's just math.

Also, I used an estimated "Forward earnings" (see definition below)on the basis of the sales result DNDN announced yesterday.

The point of the post was not to debate DNDN's actual results, but to demonstrate how earnings are valued in relation to market capitalisation.

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Definition of 'Price-Earnings Ratio - P/E Ratio'

A valuation ratio of a company's current share price compared to its per-share earnings.

Calculated as:

Market Value per Share
Earnings per Share (EPS)


For example, if a company is currently trading at $43 a share and earnings over the last 12 months were $1.95 per share, the P/E ratio for the stock would be 22.05 ($43/$1.95).

EPS is usually from the last four quarters (trailing P/E), but sometimes it can be taken from the estimates of earnings expected in the next four quarters (projected or forward P/E). A third variation uses the sum of the last two actual quarters and the estimates of the next two quarters.

Also sometimes known as "price multiple" or "earnings multiple."


Read more: http://www.investopedia.com/terms/p/price-earningsratio.asp#ixzz2LybZNfvZ