Tobin's Q = total market value / assets' replacement cost
Tobin’s Q= Total Market Value of Firm / Total Asset Value of Firm
Tobin’s Q= (Equity Market Value + Liabilities Market Value) / (Equity Book Value + Liabilities Book Value)
Tobin’s Q= Equity Market Value / Equity Book Value
the Q Ratio expresses the relationship between market valuation and intrinsic value.
