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Market value ratios give management an indication of what investors think of the company's and future prospects. The market value ratios include: ( 1 )

Market value ratios give management an indication of what investors think of the company's and future prospects. The market value ratios include: (1) Price/Earnings ratio, (2) Market/Book ratio, and (3) Enterprise Value/EBITDA ratio. The Price/Earnings (P/E) ratio shows how much investors are willing to pay per dollar of current . Its equation is:

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