These ratios that give you a benchmark for valuing a company are called market prospect ratios. Such Market Prospect Ratios are very important valuation ratios. They offer a quick measure of whether the company is overvalued or undervalued. These Market Prospects ratios also offer a very easy method of comparing companies within the peer group as well as across different groups. These ratios try to calculate potential implied returns via ratios. Some of the popular Market Prospects ratios include P/E ratio, P/BV ratio, Earnings yield, Dividend payout ratio, dividend yield etc.

Arya Nandaanswered.