Tangible Book Value

Tangible Book Value is what a company would theoretically be worth if you subtracted all its debts from its physical assets—things you can actually touch, like buildings, equipment, and inventory. It strips out intangible assets like brand names or patents, which are harder to value reliably. You'll see this metric used by value investors hunting for bargains, especially in banks and manufacturing companies where physical assets matter. For example, if TechCorp has $500 million in real assets and $200 million in debt, its tangible book value is $300 million. Dividing this by shares outstanding gives you tangible book value per share—a quick way to spot whether a stock is trading cheap relative to what the company actually owns.