Q: Difference between revisions
From Dickinson College Wiki
Jump to navigationJump to search
No edit summary |
No edit summary |
||
| Line 1: | Line 1: | ||
Tobin's q compares the value of a company given by financial markets with the value of a company's assets. It is calculated by dividing the market value of a company by the replacement value of its assets: | |||
Tobin's q = market value / asset value | |||
Another use for q is to determine the valuation of the market as a whole. The formula for this q is: value of stock market / corporate net worth | |||
[[tobin's q]] | [[tobin's q]] | ||
Revision as of 00:59, 5 December 2006
Tobin's q compares the value of a company given by financial markets with the value of a company's assets. It is calculated by dividing the market value of a company by the replacement value of its assets:
Tobin's q = market value / asset value
Another use for q is to determine the valuation of the market as a whole. The formula for this q is: value of stock market / corporate net worth
