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Microsoft Corp  (NAS:MSFT) Tangible Book per Share: \$3.52 (As of Jun. 2017)

Tangible book value per share is calculated as the total tangible equity divided by . Total tangible equity is calculated as the Total Equity minus Preferred Stock minus Intangible Assets. Microsoft Corp's tangible book value per share for the quarter that ended in Jun. 2017 was \$3.52.

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.

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Microsoft Corp Annual Data

 Jun08 Jun09 Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Jun17 Tangible Book per Share 7.35 7.61 7.26 6.45 3.52

Microsoft Corp Quarterly Data

 Sep12 Dec12 Mar13 Jun13 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 Mar16 Jun16 Sep16 Dec16 Mar17 Jun17 Tangible Book per Share 6.45 6.29 3.01 3.17 3.52

Competitive Comparison
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap.

Calculation

Microsoft Corp's Tangible Book Value Per Share for the fiscal year that ended in Jun. 2017 is calculated as

 Tangible Book Value per Share = (Total Equity - Preferred Stock - Intangible Assets) / Shares Outstanding (EOP) = (72394 - 0 - 45228) / 7708.00 = 3.52

Microsoft Corp's Tangible Book Value Per Share for the quarter that ended in Jun. 2017 is calculated as

 Tangible Book Value per Share = (Total Equity - Preferred Stock - Intangible Assets) / Shares Outstanding (EOP) = (72394 - 0 - 45228) / 7708.00 = 3.52

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's 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 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.

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