Market value ratios relate a firm’s stock price to its earning and book value.
What is a stock?
In Trading and securities, a stock is also referred to as equity and it can be defined as a financial security which represents a stockholder's ownership of a fraction of a corporation.
What is a market value ratio?
A market value ratio can be defined as a financial metric that is typically used for the measurement and analysis of the stock prices of a business organization with respect to its earning and book value.
In conclusion, market value ratio helps to track the financial performance of a business organization, in order to understand its position in the market.
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