Tangible Book Value Per Share Calculation

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 calculation. The book value per share formula is used to calculate the per share value of a company based on its equity available to common shareholders. The firm s tbv is 23 8 million. Tangible book value per share is calculated as the total tangible equity divided by shares outstanding eop total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible assets big lots s tangible book value per share for the quarter that ended in oct.

How does tangible book value per share tbvps work. According to the formula company xyz s tbvps is. Let s assume company xyz has 10 million in tangible assets which appears on the balance sheet and 1 million shares outstanding.

Tbvps determines the potential value per share of a company in the event. Tangible book value total assets total liabilities intangible assets value goodwill 97 366 53 125 7 789 12 706 23 746 million. In the analyst report smm s estimated 2021 tangible book value is at 17 8 cents after factoring in a loss per share of 2 1 cents and 1 1 cents in each of the fy leading to it.

For example intangible factors affect the value of a company s shares and are left out when calculating the bvps. Tbvps 10 000 000 1 000 000 10 00. One of the limitations of book value per share as a valuation method is that it is based on the book value and it excludes other material factors that can affect the price of a company s share.

The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. To calculate the tangible book value per share malcolm finds that the firm s number of shares outstanding is 2 000 000 million. At the end of 2016 tangible book value of general motors was 37 81 billion total assets of 221 69 billion less 6 26 billion of goodwill and intangible assets less 177 62 billion in.

Since intangibles such as goodwill cannot be sold when the company liquidates. The company also recorded 15 000 000 of tangible book value last year. The formula for tbvps is.