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Price to tangible book value definition

Description

Price to tangible book value (PTVB) is the ratio that shows share’s price in comparison with the tangible assets value per one share outstanding. Data needed to calculate this ratio is collected from balance sheet and stock market bulletin.

In general, this ratio could be explained as the amount of shareholders money if the company would cancel its’ activities and liquidate its’ tangible assets at the book value.

Norms and limitations

There a no general norms for this ratio.

Formula

Share price shows the current market price of the share.

Tangible book value per share is calculated by dividing the tangible assets from the shares outstanding.