Book Value Of Banks. That indicated the market thought many of these banks. As for the book value per share, the value it brings to our process is that it helps us find a truer picture of the bank's assets.
P/B ratios are often used to compare banks, because most assets and liabilities of banks are constantly valued at market values. The book value is essentially the tangible accounting value of a firm. In simple terms it would be the amount of money that a share holder would get if a company were to liquidate.
Valuing tangible book value Now we get to the meat of the discussion: What does tangible book value actually mean?
Book value of the liability Bonds Payable is the combination of the following The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company, which is the price of its stock.
A company's book value and its book value per share are just two small components of an overall investment calculation and strategy. Add them all together to get the book value. Here are a few other common terms you might want to look into and make sure.