Tobin Q : 1.76 (As of 2024-04-01)
Basic Info
Tobin's Q, also known as the Q ratio, is a financial metric that measures the market value of a company or the overall stock market compared to the replacement cost of its assets. Developed by Nobel laureate James Tobin, it is used to assess whether equity markets or individual stocks are overvalued or undervalued. The Q ratio is calculated by dividing the market value of a company (or all the companies in the stock market) by the total replacement cost of their assets. A Q ratio greater than 1 suggests that the market values the firm (or firms) more highly than the cost of replacing its assets, indicating potential overvaluation. Conversely, a Q ratio less than 1 implies undervaluation. However, since the difficult nature of determining the replacement value of these and similar assets, many investors do not consider Tobin's Q Ratio to be a reliable tool for valuing individual firms.
Tobin Q was 1.76 as of 2024-04-01, according to Investopedia. Historically, Tobin Q reached a record high of 2.15 and a record low of 0.28, the median value is 0.76. Typical value range is from 1.11 to 1.71. The Year-Over-Year growth is 17.28%. GuruFocus provides the current actual value, an historical data chart and related indicators for Tobin Q - last updated on 2024-04-01.
Category | Market Trend |
Region | USA |
Source | Investopedia |
Stats
Name | Value | ||
---|---|---|---|
Last Value | 1.76 | ||
Latest Period | 2024-04-01 | ||
Long Term Average | 1.41 | ||
Average Annualized Growth Rate | +1.67% | ||
Value from 1 year ago | 1.5 | ||
Change from 1 year ago | +17.33% | ||
Frequency | Quarterly | ||
Unit |