Tobin Q
: 0 (As of 2026-01-01) NEW
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.
| Category | Market Trend |
| Region | USA |
| Source | Investopedia |
Stats
| Name | Value | ||
|---|---|---|---|
| Last Value | |||
| Latest Period | |||
| Long Term Average | - | ||
| Average Annualized Growth Rate | % | ||
| Value from 1 year ago | |||
| Change from 1 year ago | % | ||
| Frequency | |||
| Unit |
Frequently Asked Questions
What is the current Tobin Q?
Tobin Q is 0 as of 2026-01-01. Data sourced from Investopedia.
What is the historical range of Tobin Q?
Over its full recorded history, Tobin Q has ranged from a low of 0 to a high of 0. The median value is 0.
Where does the data for Tobin Q come from?
Tobin Q data is sourced from Investopedia. GuruFocus aggregates and updates this indicator on a regular basis.
How can I use Tobin Q for investment analysis?
Tobin Q is one of many indicators GuruFocus tracks to help investors evaluate market conditions. Use the historical chart above to spot trends and compare with related indicators in the same category.
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