Market value ratios

Market value ratios

Ratios that relate the market price of the firm's common stock to selected financial statement items.

Market Value Ratios

Any ratio that compares a security's current market price (or average market price over a period of time) to any item on its financial statement. One of the most common market value ratios is the price-earnings ratio, which measure the market price against the company's earnings for a given period of time. Fundamental analysts use market value ratios to help determine whether a security is overvalued or undervalued.