Issue Tobin's Q should converge to one, which the US ratio contradicts

Summary

MGI invokes the theory that equity to net assets, known as Tobin's Q, should sit near one in the long run because equity ought to converge on net assets or reinvestment value under perfect competition.

Classification

Main topicMacroeconomy & Finance

Secondary topicsIndustry & Supply Chains

Region menusGlobal

Impactscope:global

Time horizonnot assigned

Last updated2026-07-29 04:49:52

Evidence 1

The global balance sheet 2026: Imbalance and divergence McKinsey Global Institute page=18;section=Is the balance sheet 'in balance?' / Equity 2026-07 accessed 2026-07-26

Constituent trends 1

TrendUS equity grows into nearly half of the sampled world's corporate equity4 signals

Directly linked signals 2

SignalMGI rebuts the argument that the high US Tobin's Q reflects mismeasured intellectual property
SignalUS equity stands at 2.4 times corporate net assets against about 1.0 elsewhere

Relation types: constitutes · direct_urgent

Public id: fm-c628c012cb47