Tangible Book Value Per Share Formula
Tbvps tbv number of shares outstanding 23 800 000 2 000 000 11 90.
Tangible book value per share formula. The formula for tbvps is. The price to tangible book value ptbv is a valuation ratio expressing the price of a security compared to its hard or tangible book value as reported in the company s balance sheet. 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. Price to tangible book value share price tangible book value per share. How does tangible book value per share tbvps work.
The company also recorded 15 000 000 of tangible book value last year. Let s assume company xyz has 10 million in tangible assets which appears on the balance sheet and 1 million shares outstanding. According to the formula company xyz s tbvps is.
The formula for the price to tangible book value is. Tbvps tangible assets shares outstanding.