Market value ratios indicate the willingness of investors to value a firm in the marketplace relative to financial statement values.

Name: Market value ratios indicate the willingness of investors to value a firm in the marketplace relative to financial statement values.
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Market value ratios, such as price-earnings ratio and market-to-book ratio, are based on the market value of a firm's stock and indicate the value that investors place on the firm, compared to its financial statement values.

Market Value Ratios Indicate the Willingness of Investors to Value