Net Tangible Book Value Formula

According to the formula company xyz s tbvps is.

Net tangible book value formula. To calculate the tangible book value per share malcolm finds that the firm s number of shares outstanding is 2 000 000 million. Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares. The formula for calculating nbv is as follows.

In the example we discussed earlier if company a has nta worth 800 million and has 200 million outstanding shares nta per share would work out to 4 00 per share. Example of net tangible assets per share. Since it did not have any intangible assets the net tangible assets value is calculated by subtracting 216 415 million from 492 378 million.

Tbvps tangible assets shares outstanding. The formula for tbvps is. Accumulated depreciation per year depreciation x total number of years.

Net tangible assets per share formula nta total number of shares. Tangible book value total assets total liabilities intangible assets value goodwill 97 366 53 125 7 789 12 706 23 746 million the firm s tbv is 23 8 million. When it reaches the end of its useful life the nbv should be equal to its salvage value.

Net tangible book value per share net tangible assets 827 115less total liabilities 684 260net tangible book value 142 855shares outstanding before offering 524 920 142 855 524 920 0 27 share preferred stock. The total value of net tangible assets are sometimes referred to as the company s book value or net asset value formula for net tangible assets nta nta total assets intangible assets total liabilities. Total assets include tangible and intangible assets and can be found on a company s balance sheet.

Tbvps determines the potential value per share of a company in the event. Tbvps 10 000 000 1 000 000 10 00 why does tangible book value per share tbvps matter. How does tangible book value per share tbvps work.