diff --git a/ldp/data_structures.py b/ldp/data_structures.py
index cc01e22..ddaf6bb 100644
--- a/ldp/data_structures.py
+++ b/ldp/data_structures.py
@@ -3,7 +3,7 @@
 import json
 import logging
 import os
-from collections.abc import Callable, Hashable
+from collections.abc import Callable, Hashable, Iterable
 from typing import Any, ClassVar, Self, cast
 from uuid import UUID
 
@@ -272,7 +272,7 @@ def assign_mc_value_estimates(self, discount_factor: float = 1.0) -> None:
 
             if children := list(self.tree.successors(step_id)):
                 # V_{t+1}(s') = sum_{a'} p(a'|s') * Q_{t+1}(s', a')
-                # Here we assume p(a'|s') is uniform over the sampled actions..
+                # Here we assume p(a'|s') is uniform over the sampled actions.
                 # TODO: don't make that assumption where a logprob is available
                 weights = [self.get_weight(child_id) for child_id in children]
                 steps = [self.get_transition(child_id) for child_id in children]
@@ -286,6 +286,47 @@ def assign_mc_value_estimates(self, discount_factor: float = 1.0) -> None:
             # (we are assuming the environment is deterministic)
             step.value = step.reward + discount_factor * v_tp1
 
+    def compute_advantages(self) -> None:
+        """Replace Transition.value with an advantage (in-place).
+
+        A(s, a) = Q(s, a) - V(s), where V(s) is estimated as the
+        average of Q(s, a') over all a' sampled at s.
+
+        TODO: put this in Transition.metadata['advantage']. Not doing
+        this right now due to implementation details in an optimizer.
+        """
+        state_values: dict[str, float] = {}
+
+        for step_id in cast(Iterable[str], nx.topological_sort(self.tree)):
+            # topological sort means we will update a parent node in-place before
+            # descending to its children
+
+            step: Transition | None = self.tree.nodes[step_id]["transition"]
+            if step is None:
+                state_values[step_id] = 0.0
+                continue
+
+            # First, update V_t so that we can compute A_{t+1} for children
+            children = [
+                self.tree.nodes[child_id] for child_id in self.tree.successors(step_id)
+            ]
+            if children:
+                state_action_values = [child["transition"].value for child in children]
+                weights = [child["weight"] for child in children]
+                state_values[step_id] = sum(
+                    w * v for w, v in zip(weights, state_action_values, strict=True)
+                ) / sum(weights)
+
+            # Now compute A_t and replace Q_t with it in-place
+            # Note that we are guaranteed at least one parent, since the `step is None`
+            # check above should have caught the root node.
+            parent_id, *extra = list(self.rev_tree.successors(step_id))
+            assert not extra, "self.tree is not a tree!"
+            step.value -= state_values[parent_id]
+            # TODO: switch to the following, instead of overwriting step.value.
+            # See docstring for explanation.
+            # step.metadata["advantage"] = step.value - state_values[parent_id]
+
     def merge_identical_nodes(
         self,
         agent_state_hash_fn: Callable[[Any], Hashable],
diff --git a/tests/test_data_structures.py b/tests/test_data_structures.py
index 267b4c5..7a72fb4 100644
--- a/tests/test_data_structures.py
+++ b/tests/test_data_structures.py
@@ -47,6 +47,10 @@ def test_tree_mc_value():
         0.0 + 0.9 * ((1.9 - 1) / 2), rel=0.001
     )
 
+    # Check we can compute advantages w/o crashing for now. TODO: test the assigned
+    # advantages. Will do so after the TODO in compute_advantages() is resolved.
+    tree.compute_advantages()
+
 
 def test_tree_node_merging() -> None:
     root_id = "dummy"