If net income doubles and shares issued doubles, theoretically, based on the same PE Ratio is constant , then Price per Share should not change.
Example :
Net income = 1,000,000
Shares OS = 1,000,000
EPS = $1.00
PE ratio = 15
Stock Price = $15.00 per share
Net Income = 2,000,000 double
Shares OS = 2,000,000 double
EPS = $1.00 same
PE Ratio = 15
Stock Price = $15.00 per share
Circ shares increased about 25% but Net Income went from negative to positive, let's just say 100%, 4 times. Circ should go up, right!