Price-To-Tangible Book Value (PTBV)

The PTBV is obtained by dividing the share price of a company by its net asset value per share after deducting intangibles. The same result is, of course, obtained by dividing the company's market capitalisation by its tangible net assets.

Because of the arbitrary nature of assets like copyrights, patents and goodwill, REFS provides this harsher measure of a company's net asset value. Excluding all intangibles has the additional advantage of being consistent, so that inter-company comparisons can be made on a more even footing. The resultant figures should be treated with caution because,
in some cases, the intangible assets (that have been deducted) will have a tremendous value, whereas in others they may be worth very little. Also, even the tangible assets may be of questionable value.