Tangible Book Value Per Share Calculator
Strip goodwill, intangibles and preferred equity out of book value to get tangible book value per share — the hard-asset floor behind a stock.
How it works
Tangible book value = total equity − goodwill & intangibles − preferred equity · TBVPS = tangible book value ÷ common shares outstanding
Book value per share divides shareholders’ equity by the share count, but a chunk of that equity is often goodwill and intangibles created by past acquisitions — accounting entries, not assets you could sell. Tangible book value per share removes goodwill, other intangibles and any preferred claims first, leaving the equity backed by real, saleable assets. Value investors watch it as a conservative floor, especially for banks and insurers where a price near or below tangible book can signal a margin of safety.
Worked example
A company reports $5,000,000,000 of equity, $800,000,000 of goodwill and intangibles, no preferred stock, and 200,000,000 shares. Tangible equity is 5,000 − 800 = $4,200,000,000; dividing by 200,000,000 shares gives $21.00 of tangible book value per share, versus $25.00 of plain book value.
Frequently asked questions
How is tangible book value different from book value?
Plain book value is simply shareholders’ equity per share. Tangible book value first subtracts goodwill and other intangible assets, so it reflects only the equity backed by physical or financial assets that could actually be liquidated.
Why do investors care about tangible book value?
It is a conservative estimate of what shareholders would be left with if intangible assets proved worthless. A price at or below tangible book value per share is often read as a valuation floor, particularly for banks, insurers and asset-heavy businesses.
Can tangible book value per share be negative?
Yes. If a company has more goodwill and intangibles than total equity — common after large debt-funded acquisitions — tangible equity turns negative, and so does tangible book value per share.
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Educational estimate, not investment advice.