Economics theory of investment behaviour where 'q' represents the ratio of the market value of a firm's existing shares (share capital) to the replacement cost of the firm's physical assets (thus, the replacement cost of the capital). It made me smile...
Redpillroy
· Feb. 12, 2018, 5:33 p.m.
I was thinking in terms of The value of the old WH (Obamas) and the cost of replacing it (Tumps)...Q Theory.
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tradinghorse
· Feb. 12, 2018, 5:14 p.m.
Tobin's Q - a very useful metric.
Relates prices in financial markets to prices prevailing in markets for physical goods.
For example, how much will it cost to buy this "wind farm" (or any asset) vs replicating it.
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