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Dell Inc (NAS:DELL)
Tangible Book Value Per Share
\$-0.83 (As of Jul. 2013)

Tangible book value per share is calculated as the total tangible equity divided by Shares Outstanding (EOP). Total tangible equity is calculated as the total equity minus preferred stock minus intangibles. Dell Inc's tangible book value per share for the quarter that ended in Jul. 2013 was \$-0.83.

Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates.

Definition

Dell Inc's Tangible Book Value Per Share for the fiscal year that ended in Jan. 2013 is calculated as

 Tangible Book Value per Share = (Total Equity - Preferred Stock - Intangibles) / Shares Outstanding (EOP) = (10680 - 0 - 12678) / 1755.000 = -1.14

Dell Inc's Tangible Book Value Per Share for the quarter that ended in Jul. 2013 is calculated as

 Tangible Book Value per Share = (Total Equity - Preferred Stock - Intangibles) / Shares Outstanding (EOP) = (10781 - 0 - 12243) / 1756.07 = -0.83

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Theoretically it is what the shareholders will receive if the company is liquidated. Total equity is a balance sheet item and equal to total assets less total liabilities of the company. Since intangibles such as goodwill cannot be sold when the company liquidates, tangible book value per share is considered more accurate in reflecting how much shareholders will receive when the company liquidates.

Explanation

Usually a companys book value and Tangible Book Value per Share may not reflect its true value. The assets may be carried on the balance sheets at the original cost minus depreciation. This may underestimate the true economic values of the assets. It also may over-estimate their true economic value because the assets can become obsolete.

For financial companies such as banks and insurance companies, their assets may be reported in current market value of the assets owned. Book values of financial companies are more accurate indicator of the economic value of the company.

Related Terms

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Dell Inc Annual Data

 Jan04 Jan05 Jan06 Jan07 Jan08 Jan09 Jan10 Jan11 Jan12 Jan13 Tangibles_book_per_share 2.40 2.53 1.65 1.91 0.58 0.91 -0.07 0.99 0.66 -1.14

Dell Inc Quarterly Data

 Apr11 Jul11 Oct11 Jan12 Apr12 Jul12 Oct12 Jan13 Apr13 Jul13 Tangibles_book_per_share 0.54 0.57 0.43 0.69 0.88 -0.24 -1.45 -1.15 -0.97 -0.83
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