Tangible Book Value Per Share - TBVPS

A method of valuing a company on a per-share basis by measuring its equity after removing any intangible assets.

The tangible book value per share is calculated as follows:

A company's tangible book value looks at what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Companies with high tangible book value per share provide shareholders with more insurance in case of bankruptcy.