Book Value Of Tangible Equity

In other words it s how much all of the physical assets of a company are worth.

Book value of tangible equity. Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares. Tangible book value also known as net tangible equity measures a firm s net asset value excluding the intangible assets and goodwill. At the end of 2016 tangible book value of general motors was 37 81 billion total assets of 221 69 billion less 6 26 billion of goodwill and intangible assets less 177 62 billion in.

Since intangibles such as goodwill cannot be sold when the company liquidates. What is the definition of tangible book value. The tangible book value per.

The term book value of equity refers to a firm s or company s common equity which is the amount available that can be distributed among the shareholders and it is equal to the amount of assets shareholders own outright after all the liabilities have been paid off. Tbvps determines the potential value per share of a company in the event. Example of tangible common equity bank of america bac for the fiscal year 2019 had a book value of 267 9 billion.