For publicly traded firms, which of these ratios measure what investors think of the company's future performance and risk?
A) liquidity ratios
B) market value ratios
C) price value ratios
D) profitability ratios

Question

Quizplus · Accepted Answer

Market value ratios are used to evaluate the share price of a company's stock and what investors think about the company's future performance and risk. These ratios include price-to-earnings (P/E) ratio, market-to-book ratio, and others that reflect the market's perception of the company's future growth and risk.

For Publicly Traded Firms, Which of These Ratios Measure What