Net Tangible Book Value Formula
According to the formula company xyz s tbvps is.
Net tangible book value formula. Tbvps tangible assets shares outstanding. Net book value original asset cost accumulated depreciation. Accumulated depreciation per year depreciation x total number of years.
The total value of net tangible assets are sometimes referred to as the company s book value or net asset value formula for net tangible assets nta nta total assets intangible assets total liabilities. Tbvps 10 000 000 1 000 000 10 00 why does tangible book value per share tbvps matter. When it reaches the end of its useful life the nbv should be equal to its salvage value.
Let s assume company xyz has 10 million in tangible assets which appears on the balance sheet and 1 million shares outstanding. The formula for calculating nbv is as follows. Example of net tangible assets per share.
To calculate the tangible book value per share malcolm finds that the firm s number of shares outstanding is 2 000 000 million. Tbvps determines the potential value per share of a company in the event. Net tangible assets per share formula nta total number of shares.
Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares. Net tangible assets per share of starbucks. Since it did not have any intangible assets the net tangible assets value is calculated by subtracting 216 415 million from 492 378 million.
Total assets include tangible and intangible assets and can be found on a company s balance sheet. Sample calculation of net book value. The formula for tbvps is.