Tangible Book Value Per Share

A company’s tangible book value is the accounting value of its tangible i.e. physical assets (buildings, land, machinery, equipment, vehicles and inventory). TBV is calculated by deducting the accounting value of intangibles and goodwill from total assets. Dividing the tangible book value by the number of outstanding shares gives the tangible book value per share, and tells investors and shareholders how much of the value per share is notionally covered if tangible assets were sold at that level.