How do people calculate Tobin'q empirically?
Does anyone use it to make investment decisions? In particular, the version I learnt has no company debt involved with only capital under consideration, will this affect empirical research?
How do people calculate Tobin'q empirically?
Does anyone use it to make investment decisions? In particular, the version I learnt has no company debt involved with only capital under consideration, will this affect empirical research?
If you are interested in Tobin's (average) q, you might find useful A Simple Approximation of Tobin's q (Chung and Pruitt (1994)). That paper has a highly accurate approximation for Tobin's Q using Compustat. While the JSTOR copy I linked to is pay-walled, other versions appear not to be.