Net Tangible Assets

Net Tangible Assets

In stocks and businesses, an expression of the underlying value of the company. That is, it is a statement of the value of the company's total assets minus the value of its total liabilities and the value of its intangible assets such as patents and goodwill. One way of thinking about the net tangible asset is that it is the underlying value of a company, not the value dictated by the supply and demand of shares or its market capitalization. See also: Net asset value.

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Net Tangible Assets

What Does Net Tangible Assets Mean?

Calculated as the total assets of a company, minus any intangible assets such as goodwill, patents, and trademarks, minus all liabilities and the par value of preferred stock. Also called net asset value and book value.

Investopedia explains Net Tangible Assets

To calculate a company's net asset value on a per bond or per share of preferred or common stock, divide the net tangible assets figure by the number of bonds, shares of preferred stock, or shares of common stock.

Related Terms:
• Asset
• Book Value
• Price to Tangible Book Value—PTBV
• Tangible Asset
• Tangible Net Worth