Tangible book value per share definition


Tangible book value per share (TVBPS) helps to evaluate the company’s assets removing intangible assets, because such assets are hard to evaluate correctly. Data to calculate this ratio is collected from statement of retained earnings and balance sheet.

This ratio is interesting to the company’s owners and investors, as it shows the amount of tangible assets per share. It is considered that tangible assets are more liquid than intangible assets.

While making a comparison to the other companies’ ratios, earnings per share of the current company must be divided by its nominal value (face value) of the share.

Norms and limitations

There are no general norms for this ratio.

This ratio should be considered along with the other financial ratios, as it only shows a limited view of the company's situation.


Tangible assets are fixed and current assets that might be expressed in physical form.

Shares outstanding might be explained as issued and outstanding shares.