Lol. That's fine man, you had time to critic on my comment but no time to justify the criticism. That's cool. Not sure how you found out about hole in my sole as I really need to buy a new shoes badly.

But maybe urban khasi, who is nowhere to be found now, would like to know. So let me explain.


Actually, Wikipedia link that the another gentleman posted in a different thread with same title, explains it far better:


Some people mistakenly use the formula market capitalization / net income to calculate the P/E ratio. This formula will often give the same answer as market price / earnings per share, but if new capital has been issued it will give the wrong answer, as market capitalization = market price × current number of shares whereas earnings per share= net income / weighted average number of shares.

Lesson learned: understand before you criticize.

Seriously.