Tangible Book Value Per Share - TBVPS


DEFINITION of 'Tangible Book Value Per Share - TBVPS'

A method of valuing a company on a per-share basis by measuring its equity after removing any intangible assets.

The tangible book value per share is calculated as follows:

Tangible Book Value Per Share (TBVPS)

BREAKING DOWN 'Tangible Book Value Per Share - TBVPS'

A company's tangible book value looks at what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Companies with high tangible book value per share provide shareholders with more insurance in case of bankruptcy.

  1. Goodwill

    An account that can be found in the assets portion of a company's ...
  2. Asset Value Per Share

    The total value of a fund's investments divided by its number ...
  3. Franchise Factor

    The measurement of the impact on a company's price-earnings (P/E) ...
  4. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  5. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  6. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
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  1. Why is the amount of net tangible assets an important benchmark?

    The value of a company's net tangible assets, or book value, is an important benchmark because it reveals the company's worth ... Read Full Answer >>
  2. Can working capital be depreciated?

    Working capital as current assets cannot be depreciated the way long-term, fixed assets are. In accounting, depreciation ... Read Full Answer >>
  3. What does high working capital say about a company's financial prospects?

    If a company has high working capital, it has more than enough liquid funds to meet its short-term obligations. Working capital, ... Read Full Answer >>
  4. How can working capital affect a company's finances?

    Working capital, or total current assets minus total current liabilities, can affect a company's longer-term investment effectiveness ... Read Full Answer >>
  5. What are working capital costs?

    Working capital costs (WCC) refer to the costs of maintaining daily operations at an organization. These costs take into ... Read Full Answer >>
  6. What does low working capital say about a company's financial prospects?

    When a company has low working capital, it can mean one of two things. In most cases, low working capital means the business ... Read Full Answer >>

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