Multiple Select Question Select all that apply Which of the following statements are true regarding the price/earning (P/E) ratio? Multiple select question. Diluted earnings per share is usually the denominator of the P/E calculation. The P/E ratio is one of the most important measures used by investors to evaluate the market price of a firm's common stock. Analysts sometimes use expected future earnings per share and the current market price in the calculation to evaluate the prospects for changes in the stock's market price. The P/E ratio is sometimes referred to as earnings per share