Tangible Book Value Formula

Tbvps tangible assets shares outstanding.

Tangible book value formula. 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. For example let s assume that company xyz has 10 000 000 shares outstanding which are trading at 3 per share. Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares.

Tangible book value total assets total liabilities intangible assets value goodwill 97 366 53 125 7 789 12 706 23 746 million. These items can be found on the balance sheet which is a financial statement that summarizes a company s financial position as of a given time usually the end of a fiscal year or quarter. For example if abc bank had 10.

Net tangible assets which is also referred to as net tangible book value is calculated by subtracting intangible assets and liabilities from total assets. The firm s tbv is 23 8 million. The result tells you what the tangible worth equals after liabilities are subtracted from tangible assets.

Book value formula calculates the net asset of the company derived by total of assets minus the total liabilities. A conservative approach to evaluating a company s worth is to calculate tangible book value also called net tangible assets. According to the formula company xyz s tbvps is.

Price to tangible book value share price tangible book value per share. Let s assume company xyz has 10 million in tangible assets which appears on the balance sheet and 1 million shares outstanding. Total assets include tangible and intangible assets and can be found on a company s balance sheet.

To calculate the tangible book value per share malcolm finds that the firm s number of shares outstanding is 2 000 000 million. The formula for tbvps is. Tbvps determines the potential value per share of a company in the event.