New Tobin’s Q formulas

In the past I reported on a formula that could be used to download the Tobin’s Q ratio for individual companies. Recently, I discovered that two new formulas have been created by Thomson Financial for Datastream which should provide a better solution to get this ratio. These formulas can be found using the search option to find formulas and available functions in Datastream: the Expression Builder or Expression Picker. The button is available below the orange Data Type button:

Using the button you can search for many formulas:

The Expression builder button allows you to search for Version 2 (created in 2015) using prefrabicated Datatype code 168E which represents the formula:

(X(MVC)*1000.000+PAD#(X(WC03451)~PCUR,C)+PAD#(X(WC03251)~PCUR,C)+PAD#(X(WC03051)~PCUR,C))/PAD#(X(WC02999)~PCUR,C)

Running the full expression like you would the previous formula will not work. You will get the error:
$$”ER”, E200, EXPRESSION TOO LONG

The only way to use the formula is by using the mnemonic as the Data Type: 168E

The second new (simpler) version of the Tobin’s Q formula is also available there: X(DWEV)/X(DWTA)*1.000

This version can be used as you would regular (smaller) formulas at the box for Data Types. Example:

An explanation of the different part codes can be found in the Datastream search menu for Data Types. You can find an overview of Data type definitions for the items in the formulas also here.

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