Tangible Book Value Per Share
Tangible book value per share is calculated as the total tangible equity divided by shares outstanding eop total tangible equity is calculated as the total stockholders equity minus preferred stock minus intangible assets mastercard s tangible book value per share for the quarter that ended in jun.
Tangible book value per share. What is tangible book value per share tbvps. I assume that since the stock is rated as enterprising the tbvps is positive and that the goodwill line item was used. Tangible book value per share tbvps equals a company s net tangible assets divided by its number of shares outstanding.
If i used the goodwill line item instead then the tbvps becomes positive. Price to tangible book value 3 15 000 000 10 000 000 2 0. Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares.
15 million stockholders equity 3 million preferred stock 2 million average shares outstanding 6 book value per share. The company also recorded 15 000 000 of tangible book value last year. Since intangibles such as goodwill cannot be sold when the company.
Tbvps determines the potential value per share of a company in the event. Price to tangible book value share price tangible book value per share. The tbv excludes a firm s intellectual property patents and trademarks because these are intangible assets that cannot be easily sold such as property plant and equipment.
In theory a stock s tangible book value per share represents the amount of money an investor would receive for each share if a company were to cease operations and liquidate all of its assets at. The tangible book value per share tbvps shows the amount per share that shareholders would expect if the firm was liquidated today. What is the definition of tangible book value.
In reviewing hnna s balance sheet for 2019 i used the other intangibles of 80 6m in calculating the tangible book value per share resulting in a negative tbvps. A tangible asset is anything that has commercial or exchange value and has a physical form. What is book value per share bvps.