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Kayne Anderson Energy Development Company (NYSE:KED)
Tangible Book Value Per Share
$24.54 (As of Feb. 2012)

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. Kayne Anderson Energy Development Company's tangible book value per share for the quarter that ended in Feb. 2012 was $24.54.

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

Kayne Anderson Energy Development Company's Tangible Book Value Per Share for the fiscal year that ended in Nov. 2011 is calculated as

Tangible Book Value per Share=Total Tangible Equity/Shares Outstanding
=(Total Equity-Preferred Stock-Intangibles)/Shares Outstanding
=(238.03-0-0)/10.34
=23.02

Kayne Anderson Energy Development Company's Tangible Book Value Per Share for the quarter that ended in Feb. 2012 is calculated as

Tangible Book Value per Share=Total Tangible Equity/Shares Outstanding
=(Total Equity-Preferred Stock-Intangibles)/Shares Outstanding
=(254.202-0-0)/10.36
=24.54

* 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.

Kayne Anderson Energy Development Company Annual Data

Nov07Nov08Nov09Nov10Nov11
Tangibles_book_per_share 0.000.000.000.000.0024.4416.1116.5920.5523.02

Kayne Anderson Energy Development Company Quarterly Data

Nov09Feb10May10Aug10Nov10Feb11May11Aug11Nov11Feb12
Tangibles_book_per_share 16.5917.0416.8819.1420.5521.8922.8622.0023.0224.54
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