This measure uses the market price per share of the stock and the earnings per share.

Understand the Problem

The question is asking which financial measure uses the market price per share of a stock and the earnings per share. This is likely related to stock market analysis.

More Information

The price-to-earnings (P/E) ratio is a crucial tool for investors to evaluate the relative value of a company's shares by measuring how much they are paying for each dollar of earnings.

Tips

A common mistake is confusing the P/E ratio with earnings per share (EPS). EPS measures profitability, whereas the P/E ratio measures valuation.

Sources

• Price-to-Earnings (P/E) Ratio: Definition, Formula, and Examples - investopedia.com
• Stock Analysis: Using the P/E Ratio - schwab.com