-Tangible book value per share (TBVPS) is the value of a company’s tangible assets divided by its current outstanding shares.#

  • TBVPS determines the potential value of one share of a company in case it has to liquidate its assets.
  • Assets such as real estate and equipment are considered tangible assets. Intangible assets such as goodwill are not included in the TBVPS calculation.
  • One of the criticisms about the validity of TBVPS is the lack of accuracy in accounting for the company’s tangible assets.