market value ratios reflect investor’s opinions

Describe three ratios that relate a firm’s stock price to its earnings,
cash flow, and book value per share, and write out their equations.
How do these market value ratios reflect investor’s opinions about a
stock’s risk and expected future growth?
What does the price/earnings (P/E) ratio show? If one firm’s P/E
ratio is lower than that of another, what are some factors that might
explain the difference? How is book value per share calculated? Explain how inflation and “goodwill” built up over time could cause book values to deviate
from market values.