Tangible Book Value Per Share

Price to tangible book value 3 15 000 000 10 000 000 2 0.

Tangible book value per share. What is tangible book value per share tbvps. Since intangibles such as goodwill cannot be sold when the company. What is the definition of tangible book value.

In theory a stock s tangible book value per share represents the amount of money an investor would receive for each share if a company were to cease operations and liquidate all of its assets at. The calculation of its book value per share is. Tbvps determines the potential value per share of a company in the event.

Using the formula above we can calculate company xyz s price to tangible book value as follows. Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares. 15 million stockholders equity 3 million preferred stock 2 million average shares outstanding 6 book value per share.

Net tangible assets per share is calculated by taking a company s net tangible asset number and dividing it by the total number of shares outstanding. What is book value per share bvps. The tangible book value per share tbvps shows the amount per share that shareholders would expect if the firm was liquidated today.

The tbv excludes a firm s intellectual property patents and trademarks because these are intangible assets that cannot be easily sold such as property plant and equipment. A tangible asset is anything that has commercial or exchange value and has a physical form. Tangible book value per share tbvps equals a company s net tangible assets divided by its number of shares outstanding.

If i used the goodwill line item instead then the tbvps becomes positive. In reviewing hnna s balance sheet for 2019 i used the other intangibles of 80 6m in calculating the tangible book value per share resulting in a negative tbvps. The company also recorded 15 000 000 of tangible book value last year.