Was reading over some old LinkedIn IPO press coverage and noticed some drastically different P/E ratios being reported. Note: I know that CBS uses the $45 IPO price and ZH uses the $83 opening price. My question is regarding how even if you swap the numbers they still do not come close.
- ZeroHedge: P/E = ($83 per share) / (???) = 980 (don't really understand their numbers)
- CBS: P/E = ($45 per share) / ($0.17 earnings per share) = 265
- Random Quora post: P/E = 1000 for share price of $70-80 (no further details)
- My own back-of-envelope calculation: P/E = ($83 per share) / ($15.4M earnings / 94.5M shares) = 510 (using the CBS earnings figure)
FWIW, today it's 880.
Anyone understand why these numbers are different? Would really appreciate a step-by-step breakdown of how to arrive at those numbers, for dummies.