Tangible Book Value Per Share - TBVPS

AAA

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)

INVESTOPEDIA EXPLAINS '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.

RELATED TERMS
  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. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  5. Intangible Asset

    An asset that is not physical in nature. Corporate intellectual ...
  6. Book Value

    1. The value at which an asset is carried on a balance sheet. ...
Related Articles
  1. Forex Education

    Using The Price-To-Book Ratio To Evaluate ...

  2. Investing Basics

    Digging Into Book Value

  3. Personal Finance

    Can You Count On Goodwill?

  4. Markets

    Book Value: How Reliable Is It For Investors?

Hot Definitions
  1. Turkey

    Slang for an investment that yields disappointing results or turns out worse than expected. Failed business deals, securities ...
  2. Conduit Issuer

    An organization, usually a government agency, that issues municipal securities to raise capital for revenue-generating projects ...
  3. Financing Entity

    The party in a financing arrangement that provides money, property, or another asset to an intermediate entity or financed ...
  4. Hyperinflation

    Extremely rapid or out of control inflation. There is no precise numerical definition to hyperinflation. Hyperinflation is ...
  5. Gross Rate Of Return

    The total rate of return on an investment before the deduction of any fees or expenses. The gross rate of return is quoted ...
  6. Debit Spread

    Two options with different market prices that an investor trades on the same underlying security. The higher priced option ...
Trading Center