CSIMarket


Terms Beginning with T
       
       
 

Tangible Book Value per Common Share

Financial Term


Tangible Book Value per Common Share (TBVPS) is calculated by subtracting the intangible assets and liabilities from the shareholders' equity and dividing the result by the outstanding common shares. Intangible assets may include goodwill, patents, trademarks, and other intangible assets acquired through mergers and acquisitions.

TBVPS is used as a measure of a company's financial strength, as it represents the value of the company's assets that can be sold or liquidated if the company were to go bankrupt. It is also used by investors and analysts as a valuation metric to assess the company's stock price relative to its book value.

A company with a high TBVPS indicates that it has a strong financial position and is less likely to experience financial distress. It can also suggest that the company's stock is undervalued, which could make it an attractive investment opportunity.

However, there are limitations to using TBVPS as a metric, as it does not take into account the future earning potential of the company and does not reflect the impact of inflation and market conditions on the company's assets. Therefore, investors and analysts often use TBVPS in conjunction with other financial ratios and metrics to gain a more comprehensive understanding of a company's financial position.


   
     

Tangible Book Value per Common Share

Financial Term


Tangible Book Value per Common Share (TBVPS) is calculated by subtracting the intangible assets and liabilities from the shareholders' equity and dividing the result by the outstanding common shares. Intangible assets may include goodwill, patents, trademarks, and other intangible assets acquired through mergers and acquisitions.

TBVPS is used as a measure of a company's financial strength, as it represents the value of the company's assets that can be sold or liquidated if the company were to go bankrupt. It is also used by investors and analysts as a valuation metric to assess the company's stock price relative to its book value.

A company with a high TBVPS indicates that it has a strong financial position and is less likely to experience financial distress. It can also suggest that the company's stock is undervalued, which could make it an attractive investment opportunity.

However, there are limitations to using TBVPS as a metric, as it does not take into account the future earning potential of the company and does not reflect the impact of inflation and market conditions on the company's assets. Therefore, investors and analysts often use TBVPS in conjunction with other financial ratios and metrics to gain a more comprehensive understanding of a company's financial position.


Related Financial Terms


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