ISSN 2394-5125
 

Research Article 


RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha.

Abstract
Generally, investors take investment decisions based on the analysis of published financial
statements of a firm. Therefore, financial statements can be measured as the most important basis of information
to analyze the financial, profitability, and liquidity conditions of any publicly-traded company. At the same time
evaluating the market value of the firm and growth is also very important as the shareholders take investment
decisions based on the growth rate of the companies. And also from the point of firms, attracting potential
investors and retention of existing shareholders is very crucial task and it is possible when there are constant
growth and enhancement in the value of the firm. The financial statement analysis using ratios is not enough to
come to proper decision making as ratios have its limitations. Therefore investors' must use relevant techniques
that help in the performance evaluation of firms accurately. On the other hand, financial analysts also seek
alternative analysis techniques of financial statements that reflect the actual performance of the company. Apart
from financial statement analysis Market Value Added and Tobin's Q Ratio is considered as two significant
techniques useful to measure the value of the firm accurately and also helpful to potential and existing investors
for their investment decision process. This paper was intended to evaluate the trend and growth of the top five
pharmaceutical companies using Market Value Added and Tobinís Q-Ratio. The top five companies from the
pharmaceutical industry considered for the study are as per the National Stock Exchange ratings based on
profitability condition and the period under the study is 10 years i.e from 2007-08 to 2016-17.

Key words: Market Value Added+ Tobinís Q-Ratio+ value of the firm + National Stock Exchange + financial statement analysis


 
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How to Cite this Article
Pubmed Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. JCR. 2020; 7(19): 2593-2602. doi:10.31838/jcr.07.19.320


Web Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. http://www.jcreview.com/?mno=120667 [Access: September 14, 2020]. doi:10.31838/jcr.07.19.320


AMA (American Medical Association) Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. JCR. 2020; 7(19): 2593-2602. doi:10.31838/jcr.07.19.320



Vancouver/ICMJE Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. JCR. (2020), [cited September 14, 2020]; 7(19): 2593-2602. doi:10.31838/jcr.07.19.320



Harvard Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha (2020) RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. JCR, 7 (19), 2593-2602. doi:10.31838/jcr.07.19.320



Turabian Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. 2020. RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. Journal of Critical Reviews, 7 (19), 2593-2602. doi:10.31838/jcr.07.19.320



Chicago Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. "RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL." Journal of Critical Reviews 7 (2020), 2593-2602. doi:10.31838/jcr.07.19.320



MLA (The Modern Language Association) Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha. "RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL." Journal of Critical Reviews 7.19 (2020), 2593-2602. Print. doi:10.31838/jcr.07.19.320



APA (American Psychological Association) Style

Dr. N.Lalitha, Dr. K.V. Sandhyavani, Dr. M. Sudha (2020) RELEVANCE OF MVA AND TOBINíS Q MODEL AS AN INVESTMENT DECISION TOOL. Journal of Critical Reviews, 7 (19), 2593-2602. doi:10.31838/jcr.07.19.320