Tangible book value per share

Tangible book value per share strips goodwill and other intangible assets out of total shareholders equity before dividing by shares outstanding, showing what each share would be worth if the company's accounting net worth were limited to assets with a genuine physical or realisable value.

The formula is:

It's generally lower than book value per share, sometimes substantially, for businesses that have grown through acquisitions, since those deals typically add large amounts of goodwill to the balance sheet. Investors who favor tangible book value per share are usually being deliberately conservative, treating goodwill and other intangibles as assets that may not hold their stated value in a distressed sale.