Tobin’s q: Measuring Market Madness
About this event
Our research seminars provide a forum for academics to present and discuss their latest work. Academics come from both within the Business School and from external institutions. They share insights from their research or a paper in progress. This is followed by discussion and questions from the audience. The series is open to staff and students from across the University.
Hosted by
Accounting and Financial Management
Speaker
Professor Stuart Price - Professor of Practice at Newcastle University Business School.
Stuart is a managing director at J.P. Morgan Asset Management, investing in global consumer goods companies. He is also a co-portfolio manager on a Sustainable Nutrition fund.
He has previously worked for Pioneer Investments in Dublin and as an equities analyst for Credit Suisse and WestLB.
Abstract
Stuart’s talk will unpack the limitations of popular valuation models in finance and explore how Tobin’s q ratio, the link between market value and replacement cost, can help explain today’s unusually high market valuations. He will explain historical patterns, compare q with other valuation metrics, and discuss what current levels may signal for future returns.