What are Market Value Ratios? | Corporate Finance | From A Business Professor

Paglalarawan

When investors and managers want to know how the market views a company’s financial health, they often turn to market value ratios, such as Earnings Per Share, Price-to-Earnings, book, and sales Ratios. These ratios compare a company’s stock price to its financial performance and give insights into investor expectations. So what exactly are those market value ratios? What do they tell us? And how are they calculated? In this video, I will walk you through these questions.