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Tangible Book Value Calculator

Enter total equity, intangibles + goodwill and shares outstanding to get TBV and TBV per share.

How it is calculated

The tool calculates TBV = Equity − Intangibles and TBV per share = TBV / Shares. Equity is total shareholders' equity from the balance sheet, Intangibles is the combined value of goodwill and other intangible assets such as acquired brands or software (one field covers both, and it is treated as zero if left empty), and Shares is the number of shares outstanding. All money amounts must be in the same currency and scale. Intangibles cannot be negative and shares must be above zero. If intangibles exceed equity, the tangible book value comes out negative and is shown with a minus sign. The tool does not deduct preferred equity or adjust for anything else.

Worked example

A company reports shareholders' equity of 850,000,000, of which goodwill and other intangibles make up 220,000,000. It has 50,000,000 shares outstanding. Tangible book value: 850,000,000 − 220,000,000 = 630,000,000, shown as $630,000,000.00. Per share: 630,000,000 / 50,000,000 = $12.60. If the stock trades at $18, it trades at about 1.4 times tangible book (18 / 12.60), a ratio you can work out yourself.

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Common mistakes

  • Entering only goodwill and forgetting other intangible assets. The single intangibles field should hold goodwill plus all other intangibles to match the usual definition.
  • Subtracting the intangibles twice, for example by entering equity that has already been reduced by goodwill.
  • Mixing scales, such as equity in millions and shares in individual units, which gives a per-share value a million times off.
  • Using diluted or average share counts from the income statement. The standard figure divides by shares outstanding at the balance sheet date.
  • Treating a negative result as an error. For companies with large acquisitions it is real and means the book value rests entirely on intangibles.

Sources

About this calculator

Tangible book value strips out anything you can't easily sell in a liquidation: TBV = total shareholders' equity − intangible assets − goodwill, then divided by shares outstanding for tangible book value per share.

Bank analysts and value investors favor it over regular book value because goodwill and intangibles from past acquisitions are accounting entries, not assets a company could actually sell to raise cash in a crunch — TBV per share is the conservative floor many investors use when judging whether a stock, especially a bank stock, is trading near or below its hard-asset value.

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Comments (1)

  • Editorial team

    Check the balance sheet for preferred stock before trusting the per-share figure. The tool subtracts only the intangibles you enter, so if the company has preferred equity, its claim is still inside the equity number and the result overstates what is left for common shareholders. Subtract it from equity yourself first. Do you apply other adjustments for banks, such as deferred tax assets? Tell us which ones you use.

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