Tobins Q in Economist

[1BigStudMuffin]

An alternative measure, the Q ratio, which compares shares to the replacement cost of net assets, shows the American market as 50% overvalued, according to Smithers & Co, a consultancy.
You see the L3 curriculum might come in handy after all for you jabronis.

 

[Greenman72]

Stud, this is the first comment I have ever seen you make that was even remotely intelligent. I’m proud of you!

 

[janakisri]

Companies don’t have assets any more quite like they used to . Apple for instance is highly overvalued if you compute replacement cost of assets . Can you however replace Apple ?
All the major IT orgs are low on assets but are valued highly by the market . Does that mean their prices are completely out of whack? For example is a 200 B dollar company actually worth only 1 B dollar based on replacement cost ?
Q is an old world measure IMHO

 

[Alladin]

1BigStudMuffin wrote:
An alternative measure, the Q ratio, which compares shares to the replacement cost of net assets, shows the American market as 50% overvalued, according to Smithers & Co, a consultancy.
You see the L3 curriculum might come in handy after all for you jabronis.

still an elementof randomness but not without content.all hail the muffun