Tobin’s q
Level II
The ratio of the market value of debt and equity to the replacement cost of total assets.
CFA RESOURCE
CFA Glossary of Terms and Formulas
Use this glossary to search CFA terms, formulas, and finance concepts while you study. Browse alphabetically, search for a specific term, or review short definitions across the CFA Program.
This page is built for candidates preparing for CFA Level I, Level II, or Level III.
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Tobin’s q
Level III
An asset-based valuation measure that is equal to the ratio of the market value of debt and equity to the replacement cost of total assets.
Top-down
Level III
Proceeding from the macroeconomy, to the economic sector level, to the industry level, to the firm level.
Top-down analysis
Level I
With reference to investment selection processes, an approach that starts with macro selection (i.e., identifying attractive geographic segments and/or industry segments) and then addresses selection of the most attractive investments withi...
Top-down approach
Level II
With respect to forecasting, an approach that usually begins at the level of the overall economy. Forecasts are then made at more narrowly defined levels, such as sector, industry, and market for a specific product.
COMMON QUESTIONS
FAQs About KeyPoint Learning's CFA Glossary
What is a CFA glossary?
A CFA glossary is a reference list of terms, formulas, and finance concepts that appear across the CFA Program. It helps candidates review key ideas while studying for Level I, Level II, or Level III.
CFA Glossary
Does this glossary cover CFA Level I, Level II, and Level III?
This glossary is designed to support candidates across the CFA Program. Where level information is available, terms can be labeled by CFA Level I, Level II, or Level III.
CFA Glossary
Does this glossary include CFA formulas?
Yes, formula-related terms may be included in the glossary. For a more focused formula review, use the CFA Formula Sheet resource.
CFA Glossary
Should I memorize every CFA term?
No. It is better to understand important terms in context than to memorize every definition by itself. Focus on how each concept works, where it appears in the curriculum, and how it may be tested.
CFA Glossary
Where can I find more CFA study resources?
You can explore KeyPoint Learning’s CFA resources for study planning, calculator guidance, formulas, GIPS Standards, and CFA Program information.
CFA Glossary
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