from Financial Reality

Tobin’s q ratio, which is defined as the ratio of market value of a company to the total replacement cost of company assets. In other words, would it be cheaper to buy a company’s stock (q < 1) or just start from scratch and buy/build all the assets (q > 1)?

Shiller’s cyclically adjusted price/earnings (P/E) ratio … averages the market P/E over a ten year period and gives similar results to John Hussman’s price/peak earnings ratio.

q and the P/E track one another quite well.