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InvestHub.com's
Finance Dictionary and Glossary of Investment Terms

Q Ratio (Tobin''s Q ratio)  

Definition 1.

A ratio devised by James Tobin of Yale University, Nobel Laureate in Economics, who hypothesized that the combined market value of all the companies on the stock market should be about equal to their replacement costs. The calculation is market value of assets divided by their replacement value.
 
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