Stock valuation

Earning is net income minus preferred dividends
preferred dividends are paid to biz owners and creditors before given to common shareholders
Earning per share (eps) is earning divided by outstanding shares
Outstanding shares include all type of shares.
price to earning (pe) ratio is price per share over eps, where per <= 15
price to book value (p/b ratio)
book value is a list of assets minus depreciation, amortization (intangible assets), or impairment cost (due to wear & tear, damage and obsolescence). p/b value < 1.0 is good, whereas < 3.0 is acceptable.
investment trust (or trust) is a limited company that invest shareholders’ funds, where shares are traded like public listed company.

SKC SCI