This shows investors that every dollar invested in GM is being used more effectively to generate profits. Market value ratios examine the correlation between a company's stock price and its earnings (Cornett et al., 2015, p. 61). These figures are calculations of a company's future performance, carried out by market analysts. If a company's other financial ratios are good, this will most likely be reflected in its market value ratios. The price-earnings ratio (calculated by dividing the market price per share by earnings per share) indicates how much investors will pay for each dollar of revenue earned by an organization, that is, how much an investor can earn expect to spend to earn a dollar. of the company's profits (Investopedia, Price-Earnings Ratio - P/E Ratio, nd). Here are the P/E ratios for Ford and GM: P/E ratio 2012 2013 2014Ford 2.94 10.88