Price to tangible book (P/TB)
Price relative to net assets after goodwill and other intangibles have been stripped out.
It is the liquidation-flavoured version of price to book: what is left if the acquisition accounting is written off.
How it is computed here
Market capitalisation / (shareholders equity - goodwill - intangible assets)
Today's market price against the latest available fundamentals. Combines today's market price with the most recently filed fundamentals. It moves whenever the price moves, with nothing having changed in the business. Filed under value. Neither a high nor a low reading is good on its own, so it is never coloured as one.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Withheld when tangible equity is zero or negative, which is common after a large acquisition, and when the market value is not known.
- Structurally hostile to businesses whose value is genuinely intangible.
Questions
How is price to tangible book calculated?
Market capitalisation / (shareholders equity - goodwill - intangible assets). Today's market price against the latest available fundamentals. Combines today's market price with the most recently filed fundamentals. It moves whenever the price moves, with nothing having changed in the business.
What does price to tangible book tell a value investor?
It is the liquidation-flavoured version of price to book: what is left if the acquisition accounting is written off.
When does price to tangible book mislead?
Withheld when tangible equity is zero or negative, which is common after a large acquisition, and when the market value is not known. Structurally hostile to businesses whose value is genuinely intangible.