DEFINITION of 'Price to Tangible Book Value  PTBV'
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. The tangible book value number is equal to the company's total book value less the value of any intangible assets. Intangible assets can be such items as patents, intellectual property, goodwill etc. The ratio is calculated as:
BREAKING DOWN 'Price to Tangible Book Value  PTBV'
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 value recorded on the company's accounting books. As a rule of thumb, stocks that trade at higher price to tangible book value ratios have the potential to leave investors with greater share price losses than those that trade at lower ratios, since the tangible book value per share can reasonably be viewed as about the lowest price a stock could realistically be expected to trade at.

Franchise Factor
The measurement of the impact on a company's priceearnings (P/E) ... 
Net Tangible Assets
Calculated as the total assets of a company, minus any intangible ... 
Book Value Per Common Share
Book value per common share is a measure used by owners of common ... 
Book Value
1. The value at which an asset is carried on a balance sheet. ... 
PriceToBook Ratio  P/B Ratio
Price to Book Ratio (P/B Ratio) is a ratio used to compare a ... 
Book Value Of Equity Per Share ...
A financial measure that represents a per share assessment of ...

Forex Education
Using The PriceToBook Ratio To Evaluate Companies
The P/B ratio can be an easy way to determine a company's value, but it isn't magic! 
Personal Finance
Can You Count On Goodwill?
Carefully examine goodwill and its sources before considering the value of your investment. 
Economics
Understanding CostVolume Profit Analysis
Business managers use costvolume profit analysis to gauge the profitability of their company’s products or services. 
Fundamental Analysis
5 MustHave Metrics For Value Investors
Focusing on certain fundamental metrics is the best way for value investors to cash in gains. Here are the most important metrics to know. 
Fundamental Analysis
5 Basic Financial Ratios And What They Reveal
Understanding financial ratios can help investors pick strong stocks and build wealth. Here are five to know. 
Investing Basics
How to Analyze a Company's Inventory
Discover how to analyze a company's inventory by understanding different types of inventory and doing a quantitative and qualitative assessment of inventory. 
Stock Analysis
Understanding Chipotle's Financials (CMG)
Learn about Chipotle Mexican Grill and its financial statements, including metrics such as comparable sales, operating margin and returns. 
Professionals
A Day In The Life Of A Public Accountant
Here's an inside look at the workdays of two experienced CPAs, to give you an idea of what it might be like to pursue a career as a public accountant. 
Professionals
A Day in the Life of a Public Accountant
There’s no typical day in the life of a public accountant, but one accountant’s experience may shed some light on what the career entails. 
Investing Basics
How To Decode A Company’s Earnings Reports
Earnings reports tell investors how a publiclytraded company is performing, but aren’t always easy to decipher.

What's the difference between book and market value?
Book value is the price paid for a particular asset. This price never changes so long as you own the asset. On the other ... Read Full Answer >> 
What items are considered liquid assets?
A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >> 
What is the formula for calculating EBITDA?
When analyzing financial fitness, corporate accountants and investors alike closely examine a company's financial statements ... Read Full Answer >> 
What is the formula for calculating the debttoequity ratio?
Expressed as a percentage, the debttoequity ratio shows the proportion of equity and debt a firm is using to finance its ... Read Full Answer >> 
How do I calculate the P/E ratio of a company?
The priceearnings ratio (P/E ratio) is a valuation measure that compares the level of stock prices to the level of corporate ... Read Full Answer >> 
How do you calculate return on equity (ROE)?
Return on equity (ROE) is a ratio that provides investors insight into how efficiently a company (or more specifically, its ... Read Full Answer >>