Market value ratio helps in assessing the company's stock price based on the business performance.
Explanation:
The market value ratios are employed by potential and current investors or entrepreneurs to evaluate the position of the company shares (under-priced or over-priced).
The following the common market value ratios,
1. Earnings per share
2. Dividend yield
3. Market value per share
4. Book value per share
5. Earnings/Price ratio
The investor relations officers takes care of tracks the market value ratios and looks after the pricing systems/company's performance.
