Financials

Tangible book value

Book value adjusted to exclude goodwill and certain intangible assets.

What it means

Tangible book value focuses on net assets after removing selected nonphysical assets. It is often discussed for financial companies and acquisition-heavy balance sheets.

Example

If shareholders equity is $10 billion and goodwill plus intangibles are $3 billion, tangible book value is $7 billion under that formula.

What not to infer

Tangible book value is still an accounting measure, not a liquidation estimate or full valuation.