Tangible book value is like regular book value, but
it ignores intangible assets like goodwill.
Thanks to conservative accounting rules, book value completely
ignores intangible assets like brand name, goodwill, patents and other intellectual property created by a company.
Not exact matches
One of the line entries on your balance,
intangible assets are probably one of the hardest items to put an actual value to and are only recorded on the balance sheet if purchased and are
ignored if internally generated.
You should be able to confirm / calculate the value of
intangibles from other sources — like reserve reports, industry comps, superior / sustainable earnings etc. — if you can't, it's usually best to
ignore these «
assets «(try tell this to your average junior resource company investor, sigh...).
[NB: I had to presume all
intangible asset expenditure was acquisition - related, and therefore
ignore it in the table above.]