Tangible Book Value

Tangible Book Value (TBV) is a measure of a company's net worth that excludes all intangible assets — such as goodwill, patents, trademarks, and brand value — from the standard book value calculation. It is calculated as: TBV = Total Equity – Intangible Assets – Goodwill. TBV represents the hard, physical asset base that would remain for shareholders if the company were liquidated, providing a conservative floor valuation. It is particularly relevant for financial institutions and asset-heavy industries, where the balance sheet consists primarily of tangible assets. For banks in India, Price-to-Tangible Book Value (P/TBV) is a widely used valuation metric — a bank trading below its TBV may indicate deep value or significant asset quality concerns, depending on the context.