Market ratios primarily measure what aspect of a company?

Market ratios are primarily focused on capturing the relationship between a company's stock price and its earnings, dividends, or book value. These ratios, such as the price-to-earnings (P/E) ratio or the price-to-book (P/B) ratio, reflect how investors value the company relative to its financial performance or assets. This valuation represents the market's perception of the company's current and future performance prospects.

By measuring these ratios, investors can gauge how the market is responding to owning a company's stock, thus allowing them to make informed decisions about buying, selling, or holding shares. The ratios provide insight into investor sentiment and expectations, which is crucial in assessing the attractiveness of an investment. Therefore, they are fundamentally aligned with the concept of investor response to owning a company's stock.