The main objective of this study is to investigate the effect of performance evaluation market
ratios on the stock return of companies listed in the Tehran Stock Exchange. For this purpose, a sample of
80 companies were investigated and analyzed among the companies listed in the Tehran Stock Exchange
during the years 2006 to 2010. In this study is used the variables of earnings per share (EPS), price to
earnings ratio (P/E) and the ratio of market value to book value of equity (M/B) to evaluate the market
ratios of performance evaluation of companies. The research results indicate that earnings per share has
significant and positive effects on stock return of current year, but on the stock return of future year has
positive and bound line effects. Also obtained results show that the variables of price to earnings ratio and
market value to book value ratio statistically have significant and negative effects on stock