Market value ratios give management an indication of what investors think of the company's $-$Select$-$vand future prospects. The market valueratios include: $(1)$ Price$/$Earnings ratio, $(2)$ Market$/$Book ratiofand $(3)$ Price$/$Cash flow ratio. The Price$/$Earnings $($P$/$E$)$ ratio shows how much investors are willing to pay per dollar of reported $-$Select$-$y :$.$ Its equation is:Price$/$Earnings $($P$/$E$)$ ratio $=$Price per shareEarnings per shareToolsje Success TipsP$/$E ratios are $-$Select$-$ for firms with strong growth prospects and relatively little risk but$-$Select$-$ v for slowly growing and risky firms. The Market$/$Book$($M$/$B$)$ ratio is another indication of how investors regard a firm. Its equation is:er Success TipsMarket price per shareMarket$/$book ratio $=$ M$/$B $=$Book value per shareCompanies with$-$Select$-$ v risk and $-$Select$-$ v growth have high M$/$B ratios. M$/$B ratios typically exceed $-$Select$-$ V $,$ which means that investors are willing topay more for stocks than their accounting book values.