Tangible Book Value Per Share Formula
The company also recorded 15 000 000 of tangible book value last year.
Tangible book value per share 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. Let s assume company xyz has 10 million in tangible assets which appears on the balance sheet and 1 million shares outstanding.
The formula for the price to tangible book value is. Tbvps determines the potential value per share of a company in the event. According to the formula company xyz s tbvps is.
The formula for tbvps is. The price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard or tangible book value as reported in the company s balance sheet. Tbvps tbv number of shares outstanding 23 800 000 2 000 000 11 90.
Price to tangible book value share price tangible book value per share. Tbvps 10 000 000 1 000 000 10 00 why does tangible book value per share tbvps matter.