Tangible book value per share
What is Tangible book value per share?
This is an indicator with which you can evaluate a company's value based on the ratio of its tangible assets to the number of outstanding shares.
What does Tangible book value per share mean?
Using this metric, you can determine what common shareholders will receive in the event of bankruptcy of a company and its subsequent liquidation at the book price. Value investors use this ratio to find undervalued companies that are trading below their liquidation price.