Tangible Book Value

Wall Street Journal  Mar 3  Comment 
Caixabank said it plans to quadruple its return on tangible equity during the next four years by clamping down on costs and boosting revenue amid Spain’s modest economic recovery.
Channel News Asia  Oct 20  Comment 
Sembmarine's subsidiaries have secured contracts worth a combined S$222 million; the contracts are not expected to have any material impact on the consolidated net tangible assets per share and earnings per share this year, the company said.
SeekingAlpha  Oct 3  Comment 
By Martin Vlcek: Tidewater, Inc. (NYSE:TDW) is a global provider of vessel and support services to offshore drilling companies. Tidewater has been established since 1956 and provides services in support of offshore exploration, field development...


Tangible Book Value equals book value minus intangible assets and goodwill

Tangible Book Value (alternately "Net Tangible Assets" or "Net Tangible Equity") is the total net asset value of a company (book value) minus intangible assets and goodwill.

A company's standard book value may be significantly affected by intangible assets and/or goodwill. As the values of these assets are more subjective than "hard" assets (such as cash or property, plant and equipment), including them in the calculation of book value may misrepresent the underlying worth of the company. Thus, In general, tangible book value can be thought of as the worth of all of the company's physical "stuff" and is therefore a close approximation to what the company might expect to see returned in a liquidation.


  • On its balance sheet, company XYZ lists assets of $450 million, of which $125 million is attributed to intangible assets and $25 million to goodwill. XYZ also lists total liabilities of $200 million. The book value, therefore, is $250 million (450 – 200) while the tangible book value is $100 million (450 – 125 – 25 – 200).

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