Tobin's q is the ratio of stock market value of a stock to the value of its capital.

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Tobin's q is defined as the ratio of the market value of a company's assets to the replacement cost of those assets. However, in finance, Tobin's q is also used as a measure of a company's valuation, which is calculated as the ratio of the market value of a company's total assets to the book value of those assets. In this context, Tobin's q is a measure of the market value of a company relative to its capital.

Tobin's Q Is the Ratio of Stock Market Value of a Stock