The Most Overrated Valuation Metrics

Book value is a measure of what you would get if you liquidate the company. Tobin Q ratio was developed for a different era with manufacturing companies, he says. "As a new age, it's the value comes not from physical assets" Coca-Cola can charge a dollar for a can of water with crap and sugar and syrup thrown into it,. It costs them three cents to make. That pricing power is not going to be reflected if I look at that plant and equipment.