Company financials
Book value and tangible book value
A factual guide to book value, tangible book value, and balance-sheet net worth measures.
What book value measures
Book value generally refers to shareholders equity on the balance sheet: assets minus liabilities as reported under accounting rules.
Tangible book value adjusts that idea by removing goodwill and certain intangible assets, depending on the definition used.
Where it is useful
Book-value measures can be especially relevant for balance-sheet-heavy businesses such as banks and insurers, but definitions and accounting details matter.
Aerarium Research financial pages keep balance-sheet data tied to SEC filings so readers can see the period and source behind the numbers.
What not to infer
Book value is not the same as market value, liquidation value, or intrinsic value. Accounting rules, asset mix, liabilities, and business model all affect interpretation.
Use book-value measures as balance-sheet context, not as a standalone statement about what a company is worth.
Common questions
Is book value the same as shareholders equity?
In many contexts, book value refers to shareholders equity, though per-share and adjusted definitions should be checked carefully.
Why remove intangible assets?
Tangible book value focuses on net assets after excluding goodwill and some intangibles, which can be useful for certain balance-sheet analyses.
Can book value be negative?
Yes. Reported liabilities can exceed reported assets or accumulated losses can reduce equity below zero.