Net income: is located in shareholder

Price per share: market value per share: market value of the company over shares
outstanding: amount buyer willing to buy

Earnings per share: how much investor supposed to receive

PE: comparison between price per share and earnings per share:

Expect PE to be high or low?

If PE = 6 => price per share is much higher than earnings per share => investors see the
company have potential to grow

Nhà đầu tư expect high PE hơn là low PE bởi vì như thế cho một signal về sự phát triển
của công ty

Price sales ratio: difference with PE

Sales per share (not earnings per share): ở những công ty startup chưa có nhiều
earnings nên prefer sales per share hơn.

Market to book ratio: compare markets value per share and book value per share (price
to book value (P/B)

If P/B = 1 =>

If P/B > 1

If P/b < 1

Market value of assets = market value of debts + market value of equities

However, it is difficult to measure market value of debts

Book value of assets can get from financial statement

Prufrock case study