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Guidewire Software Inc (NYSE:GWRE)
Tangible Book Value Per Share
$9.04 (As of Apr. 2014)

Tangible book value per share is calculated as the total tangible equity divided by Shares Outstanding. Total tangible equity is calculated as the total equity minus preferred stock minus intangibles. Guidewire Software Inc's tangible book value per share for the quarter that ended in Apr. 2014 was $9.04.

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

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

Tangible Book Value per Share=Total Tangible Equity/Shares Outstanding
=(Total Equity-Preferred Stock-Intangibles)/Shares Outstanding
=(228.429-0-15.927)/57.91
=3.67

Guidewire Software Inc's Tangible Book Value Per Share for the quarter that ended in Apr. 2014 is calculated as

Tangible Book Value per Share=Total Tangible Equity/Shares Outstanding
=(Total Equity-Preferred Stock-Intangibles)/Shares Outstanding
=(634.995-0-15.004)/68.56
=9.04

* 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

Total Equity, Preferred Stock, Intangibles, Total Shares Outstanding


Historical Data

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

Guidewire Software Inc Annual Data

Jul09Jul10Jul11Jul12Jul13
Tangibles_book_per_share 0.000.000.000.000.000.000.00-1.033.413.67

Guidewire Software Inc Quarterly Data

Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14Apr14
Tangibles_book_per_share 3.253.563.413.503.673.653.679.169.039.04
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