Showing posts with label Tobin's Q. Show all posts
Showing posts with label Tobin's Q. Show all posts

Sunday, April 29, 2007

The Q-Ratio


The q-ratio is a method of estimating the fair value of the stock market, and is argued for in the book Valuing Wall Street, by Andrew Smithers and Stephen Wright.

They indicate that the data need for Q from 1952 onward is in the Z1 Flow of Funds report from the Federal Reserve. I'm trying to independently recreate the graphs from that source.