Final answer:
Investors use various measures to evaluate stocks, including financial ratios, book value, earnings per share, and return on equity.
Step-by-step explanation:
When evaluating stocks as an investor, there are several measures that can be used to assess their worthiness and prospects. These include financial ratios, book value, earnings per share, and return on equity.
Financial ratios provide insights into a company's profitability, liquidity, and solvency. Book value represents the value of a company's assets after subtracting liabilities, and earnings per share measure a company's profitability per share of stock. Return on equity evaluates how effectively a company is utilizing shareholders' equity to generate profits.