Tobin’s Q (See Chapter 20 of the Vernimmen) Tobin’s Q is a ratio devised by James Tobin of Yale University, Nobel Laureate in Economics, who hypothesised that the combined market value of all the companies on the stock market should be about equal to their replacement costs. Tobin’s Q ratio is calculated by dividing the market value of assets by their replacement value. Also called the Q ratio. Tobin’s Q (See Chapter 20 of the Vernimmen) Tobin’s Q is a ratio devised by James Tobin of Yale University, Nobel Laureate in Economics, who hypothesised that the combined market value of all the companies on the stock market should be about equal to their replacement costs. Tobin’s Q ratio is calculated by dividing the market value of assets by their replacement value. Also called the Q ratio. See all terms in the dictionary of finance To know more about it, look at what we have already written on this subject :

You get more than just a glossary on www.vernimmen.com: - A monthly newsletter with over 26,000 subscribers - 610,000 financial data for over 16,000 groups - A 279-question quiz with answers - A text book that has sold 70,000 copies - And all the rest

To find other words in the dictionary of finance, click on the first letter of the word you are looking for:

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Definitions of terms begining with the same letter as "Tobin’s Q" :

TMT TSR Take and pay contract Take or pay contract Takeover Takeover bid Tangible fixed asset Tapping the reserves Tax loss carrybacks Tax loss carryforwards Tax shield Technical analysis Technical dilution Temporal method Temporary differences Tender offer Term sheet Terminal value The bottom-up approach is also called the stock-picking approach.

Theory of markets in equilibrium Theta Time deposit Time diversification Time value Time value of money Timing differences Timing problem Tobin’s Q Toogle notes Top-down approach Total breakeven Total debt service Total return swap Total shareholder return, TSR Tracking stock Trade buyer Trade payables Trade receivables

Trade-off model Trading profit Trailing ratio Transaction multiples Transaction multiples method Transfer Transfer of assets Translation Translation risk Treasury Treasury method Treasury shares Treeing Trend analysis Trust preference shares Turnover – assets Turnover – liabilities