Tangible Book Value Per Share Calculation

For example intangible factors affect the value of a company s shares and are left out when calculating the bvps.

Tangible book value per share calculation. Tbvps determines the potential value per share of a company in the event. For example let s assume that company xyz has 10 000 000 shares outstanding which are trading at 3 per share. Tangible book value total assets total liabilities intangible assets value goodwill 97 366 53 125 7 789 12 706 23 746 million.

The firm s tbv is 23 8 million. The formula for the price to tangible book value is. Tangible book value per share tbvps is the value of a company s tangible assets divided by its current outstanding shares.

Back of the envelope calculation means uobkh has calculated the current tangible book value to be 21 cents per share. The company also recorded 15 000 000 of tangible book value last year. To calculate the tangible book value per share malcolm finds that the firm s number of shares outstanding is 2 000 000 million.

The term book value is a company s assets minus its liabilities and is sometimes referred to as stockholder s equity owner s equity shareholder s equity or simply equity. 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 big lots s tangible book value per share for the quarter that ended in oct. One of the limitations of book value per share as a valuation method is that it is based on the book value and it excludes other material factors that can affect the price of a company s share.

In the analyst report smm s estimated 2021 tangible book value is at 17 8 cents after factoring in a loss per share of 2 1 cents and 1 1 cents in each of the fy leading to it. Price to tangible book value share price tangible book value per share. 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.

Tbvps 10 000 000 1 000 000 10 00. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company. The formula for tbvps is.