This research, considering Tobin's Q as a proxy for market valuation, determines the factors relevant in firm valuation in Indian equity markets. The study observes that Tobin’s Q is a sound measure for judging the firms' valuation in both intrinsic and market terms. OLS based multiple regression models find the financial leverage and ROI as significant determinants of market valuations in India. However, the degree of impact of these firms financials on Tobin's Q is time varying and inconsistent.