State whether the following statements are true or false with reasons: Price ratios are not a parameter to get an idea of whether a stock (share) price is reasonable or not.

False. Price ratios (such as P/E ratio, P/B ratio, P/S ratio) are indeed used as parameters to get an idea of whether a stock price is reasonable or not. However, they are relative metrics. They are most useful when comparing a company's ratio to its historical ratios, to its competitors' ratios, or to industry benchmarks. They help investors assess if a stock is undervalued or overvalued relative to its earnings, book value, or sales.