The market value ratios indicate the financial markets' assessment of the value of a firm's securities.

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Market value ratios, such as price-to-earnings (P/E) ratio and market-to-book ratio (M/B), reflect the market's perception of a company's performance and future prospects. These ratios are based on the current market price of a company's securities and are used by investors to determine whether a stock is undervalued or overvalued. Therefore, market value ratios do indicate the financial markets' assessment of the value of a firm's securities.

The Market Value Ratios Indicate the Financial Markets' Assessment of the Value