Tangible book value per share

Book value (also known as equity, shareholders' funds, or net asset value) is the value of all a company's assets, minus its liabilities. The number can be found on the balance sheet in an annual report.

It is sometimes used to estimate what a firm would be worth if all its assets were sold, and is often used to value banks and house-builders. But book value may contain intangible assets, such as goodwill', which may not be worth much at all.

MoneyWeek

Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Get 6 issues free

https://cdn.mos.cms.futurecdn.net/flexiimages/mw70aro6gl1676370748.jpg

Sign up to Money Morning

Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter

See Tim Bennett's video tutorial:Beginner's guide to investing: the price-to-book ratio.

MoneyWeek is written by a team of experienced and award-winning journalists, plus expert columnists. As well as daily digital news and features, MoneyWeek also publishes a weekly magazine, covering investing and personal finance. From share tips, pensions, gold to practical investment tips - we provide a round-up to help you make money and keep it.