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What Is Tangible Book Value?

By Matt Koppenheffer and David Hanson - Jan 20, 2014 at 7:10AM

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What is tangible book value and why do investors look at it?

Most investors are familiar with the P/E Ratio, but fewer are comfortable with a metric like Tangible Book Value.

In this segment of The Motley Fool's financials-focused show, Where the Money Is, financial-sector analysts Matt Koppenheffer and David Hanson explain what Tangible Book Value is, why it's meaningful, and how it differs at companies like Bank of America (BAC 1.08%) and Google (GOOGL -0.31%).

David Hanson has no position in any stocks mentioned. Matt Koppenheffer owns shares of Bank of America and Citigroup. The Motley Fool recommends Bank of America and Google. The Motley Fool owns shares of Bank of America, Citigroup, Google, and Microsoft. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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Stocks Mentioned

Bank of America Corporation Stock Quote
Bank of America Corporation
BAC
$36.64 (1.08%) $0.39
Alphabet Inc. Stock Quote
Alphabet Inc.
GOOGL
$121.70 (-0.31%) $0.38
Microsoft Corporation Stock Quote
Microsoft Corporation
MSFT
$292.71 (-0.26%) $0.76
Citigroup Inc. Stock Quote
Citigroup Inc.
C
$54.18 (0.20%) $0.11

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