I found this tremendously useful in understanding the whole concept behind Tobin's Q before diving into the specifics of it in my university course. Thanks very much!
Hi Tim, just thought it wud be helpful to upload a video on the hierarchy of investment banking including the requirements to get into the sector as well as what kind of experience one wud acquire from such a career. cheers!
Mrmartinlibra. These are all introductory videos. I will happily add something meatier if there is interest in it. Any meaningful calculation would need at least another ten minutes to do on video!
when you mention use the replacement value as the denominator, what are you referring to (The asset value value ?)? Alternatively, what balance sheet entries do we use to calculate it?
hey tim. If the tobins Q is low for a industry overall. is that fair to say there is a " underinvestment " in the idnsutry ? if for example there is a tobins q of 0.4 ?
I am currently reading a research paper on the long term effects of hedge fund activism and they are using tobins Q as a metric to measure the operating performance, arguing that a rise in the Q value represents a positive effect on target companies. Is this actually valid? It only describes the market value relative to the replacement value, meaning that a rise could come from a higher market value ( not really operative) or a decline in the replacement value ( = possibly bad operative performance). Could anyone comment on this?
I found this tremendously useful in understanding the whole concept behind Tobin's Q before diving into the specifics of it in my university course.
Thanks very much!
A good video to watch before or alongside this one is "what is the price to book ratio". Tim.
Hi Tim, just thought it wud be helpful to upload a video on the hierarchy of investment banking including the requirements to get into the sector as well as what kind of experience one wud acquire from such a career. cheers!
Can't believe this video was 12yrs ago, Great explanation 🙌
John Oliver is on point
hahaha
pro trick : watch series at flixzone. Me and my gf have been using them for watching lots of of movies during the lockdown.
@Everett Cody Definitely, I have been using Flixzone for years myself =)
@Everett Cody Yup, have been watching on Flixzone for since december myself :D
Mrmartinlibra. These are all introductory videos. I will happily add something meatier if there is interest in it. Any meaningful calculation would need at least another ten minutes to do on video!
how to calculate tobin's q??
when you mention use the replacement value as the denominator, what are you referring to (The asset value value ?)? Alternatively, what balance sheet entries do we use to calculate it?
replacement value = book value = fair value
@@luizscheuer670 I think that's incorrect. He explains at the end of the video replacement value is different to book value.
hey tim. If the tobins Q is low for a industry overall. is that fair to say there is a " underinvestment " in the idnsutry ? if for example there is a tobins q of 0.4 ?
That was a great explanation, thanks!
I couldn't find the tobin's Q in any key statistics at yahoo finance. where could I find it?
this is a great and simply explained tutorial
A fantastic explanation! Thank you!
so basically it is Market capitalization / Book value of assets ??
Thank you, great video !
Good video, thank you
Thanks it's very helpful.
Hi sir, why there is no sound?
thank you very much Tim. Books are very boring to me since I discover your youtube channel.
Cheers ;)
I am currently reading a research paper on the long term effects of hedge fund activism and they are using tobins Q as a metric to measure the operating performance, arguing that a rise in the Q value represents a positive effect on target companies. Is this actually valid? It only describes the market value relative to the replacement value, meaning that a rise could come from a higher market value ( not really operative) or a decline in the replacement value ( = possibly bad operative performance). Could anyone comment on this?
It could be a proxy and valid if you strip out general market movements. Better off using ROCE or ROA.
Thank you very much for this!! Very easy to follow! ^_^
Thanx from India
thank you great explanation
Has to be US-listed firms or otherwise, it's too hard to market equities. You are aware other countries have stock exchanges right!?
market value = market capital + debt ?
good explanation but u should at least give an outline of whats happening on the board
thank you Sir
good video
Answer is 42
You're incredible
they named it all after me ,i said it was fine...
Tobin tax
Don't know why but I don't like that guy at all 😅 Nevertheless good video!
that is sad
Thank you for this video 🙌🏼