Tangible Book Value Per Share (TBVPS)
Tangible book value per share divides tangible common equity by common shares outstanding.
Formula
A simplified formula is:
TBVPS = Tangible common equity ÷ Common shares outstanding
Assume:
- tangible common equity: $3.6 billion
- common shares: 150 million
TBVPS:
$24
The result is an adjusted accounting-equity amount per common share.
BVPS vs. TBVPS
Assume:
- common equity: $4.5 billion
- goodwill and other intangibles: $900 million
- shares: 150 million
BVPS:
$30
TBVPS:
$24
The $6 gap per share comes from excluded intangible assets.
The stock can trade above or below either number.
Real 2026 example
A 2026 SEC-filed earnings release reported:
- tangible common equity: approximately $333.7 million
- common shares outstanding: approximately 12.847 million
- tangible book value per common share: $25.98.[1]
The arithmetic connects the company-level equity adjustment to a per-share measure.
TBVPS is not net tangible book value in every context
Public offerings often disclose:
net tangible book value per share
for dilution analysis.
That measure can be constructed from:
- tangible assets
- liabilities
- common shares
The terminology can overlap with TBVPS.
Definitions should be checked rather than assumed identical.
Offering dilution example
A 2026 prospectus disclosed net tangible book value per share before and after a proposed stock offering and measured purchaser dilution against the offering price.[2]
That use is different from evaluating a mature bank at price-to-tangible-book.
Same family of concepts.
Different analytical purpose.
Price-to-tangible-book
A common valuation ratio is:
Share price ÷ TBVPS
Assume:
- share price: $36
- TBVPS: $24
Price-to-tangible-book:
1.5x
That multiple should be interpreted with:
- ROE
- asset quality
- growth
- capital adequacy
- risk
A low ratio is not automatically cheap.
Buybacks can change TBVPS
Suppose a company repurchases shares below TBVPS.
Simplified:
- tangible equity: $1 billion
- shares: 100 million
- TBVPS: $10
Repurchase:
- 10 million shares
- $6 per share
- $60 million cash
New tangible equity:
$940 million
New shares:
90 million
New TBVPS:
about $10.44
The measure rises because shares were retired below tangible book.
Buybacks above TBVPS can reduce it
Use the same starting balance.
If the company pays:
$14 per share
for 10 million shares:
new tangible equity:
$860 million
new shares:
90 million
TBVPS:
about $9.56
EPS can still increase even while TBVPS falls.
Capital allocation needs more than one per-share metric.
Goodwill impairment can affect BVPS more than TBVPS
Because TBV already excludes goodwill:
a later goodwill impairment may reduce ordinary book value while leaving tangible book value less affected.
This can create a sharp divergence in trends.
The accounting loss is still relevant because it can reveal acquisition failure.
New stock issuance can raise or lower TBVPS
Issuing shares above current TBVPS can be accretive to TBVPS after costs.
Issuing below TBVPS can be dilutive.
That is why offering documents often emphasize net tangible book value dilution.
The share price alone is not the whole analysis.
Financial-company use
TBVPS is commonly watched for:
- banks
- insurers
- mortgage companies
because tangible common equity can be a meaningful loss-absorption and valuation reference.
It is not a substitute for regulatory capital or asset-quality analysis.
Common mistakes
"TBVPS is GAAP EPS for the balance sheet."
No.
"TBVPS equals liquidation value per share."
No.
"A stock below TBVPS must be undervalued."
No.
"Every company calculates TBVPS the same way."
No.
Example
Tangible common equity of $3.6 billion divided by 150 million common shares produces TBVPS of $24.
Professional note
Reconcile common equity to tangible common equity, then verify the share denominator. When comparing price-to-tangible-book, use consistent adjustments and pair the multiple with profitability and asset quality. A clean denominator is necessary but not sufficient.
Related terms
- Goodwill
**Goodwill** is an acquisition-related asset generally created when the consideration paid for a business exceeds the fair value of its identifiable net assets. It can represent expected synergies, assembled workforce, market position and other benefits that cannot be recognized as separate identifiable assets.
- Intangible Assets
**Intangible assets** are identifiable assets without physical substance. Examples can include technology, customer relationships, licenses, trademarks, patents, domains and certain capitalized software. Finite-lived intangible assets are generally amortized; indefinite-lived assets are generally handled differently and are subject to impairment assessment.
- Common Stock
Common stock represents an ownership interest in a corporation and generally carries a residual claim after creditors and senior securities.
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Platforms related to this term
- Public
Mentioned in this definition
Related comparisons
Sources
- U.S. Securities and Exchange Commission — EDGAR — 2026 Earnings Release — Tangible Common Equity and Tangible Book Value Per Share
- U.S. Securities and Exchange Commission — EDGAR — 2026 Prospectus Supplement — Tangible Book Value Per Share and Dilution
- U.S. Securities and Exchange Commission — EDGAR — RenaissanceRe — 2026 Book Value and Tangible Book Value Reconciliation