Equity Valuation
Tangible Book Value
Definition
What is Tangible Book Value?
Book valueThe accounting value of shareholders' equity. after deducting goodwillAn acquisition asset representing the excess purchase price over the fair value of identifiable net assets. and other intangible assetsNon-physical resources such as patents, licences, brands, and software..
Example in practice
How This Looks in Practice
A bank's tangible book value excludes acquired goodwill.
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Related Terms
Equity Valuation
Earnings Per Share
Net income attributable to ordinary shareholders divided by weighted average ordinary shares.
Equity ValuationDiluted Earnings Per Share
Earnings per share assuming potentially dilutive securities convert into ordinary shares.
Equity ValuationBasic Earnings Per Share
Earnings per share calculated using actual weighted average ordinary shares outstanding.
Cash Flow AnalysisOperating Cash Flow
Cash generated or used by a company's core operations.