Q Ratio (Tobin's Q)

Q Ratio (Tobin's Q),

Q Ratio (Tobin's Q) Definition:

The Q Index, also known as the Tobin Q, is the market value of a company divided by the replacement cost of its assets. Therefore, when equilibrium exists, the market price matches the alternative price. At its most basic level, the Q ratio shows the relationship between market value and intrinsic value. In other words, it's a way of estimating whether a particular company or market is overvalued or undervalued.

  • Cue's report was popularized by novelist James Tobin and was discovered by Nicholas Caldor in 1966.
  • The Q Index, also called the Tobin Q, measures whether a company or market is generally above or below its value.
  • It is based on the concepts of market value and alternative value.
  • Simplified Q Index is the market value of shares divided by the book value of the shares.

Literal Meanings of Q Ratio (Tobin's Q)


Meanings of Q:
  1. Electric charge.

  2. The seventeenth letter of the alphabet.

  3. Quarter (refers to a particular quarter of the financial year)

  4. Queen (especially used to describe playing cards and recording chess moves)

  5. Question.

  6. This refers to a fictitious source of the shared passages of the Gospels of Matthew and Luke, but is not found in Mark.

Sentences of Q
  1. I'm having trouble describing the letter Q.


Meanings of Ratio:
  1. A quantitative relationship between two quantities, indicating how often one value joins another or joins another.

Sentences of Ratio
  1. The employment rate for men and women is 8 to 1

Synonyms of Ratio

quantitative relation, balance, proportion, relationship, comparative extent, correlation, comparative number, correspondence


Meanings of S:
  1. Seconds)

  2. Part (of an action)

  3. Shilling (E)

  4. Not married.

  5. Solid

  6. (No tradition) Baby (children)

  7. Zero refers to electrons and orbits with angular velocity and perfect balance.

  8. Distance (in mathematical formulas).

  9. The 19th letter of the alphabet

  10. After R displays in a series of the following elements, categories, etc.

  11. Form a capital S-like.

  12. (Especially in Catholic usage)

  13. Siemens

  14. Small (such as clothing size).

Sentences of S
  1. m 1991 to s to d