Which ratio reflects the stock market's assessment of a company's future performance?

A) Price/earnings ratio.
B) Dividend yield ratio.
C) Fixed asset turnover ratio.
D) Cash coverage ratio.

Price/Earnings Ratio

A valuation metric for stocks calculated by dividing the market price per share by the earnings per share, indicating how much investors are willing to pay per dollar of earnings.

Stock Market

A marketplace where shares of public companies are traded between investors.