A method of determining the current price of a security in comparison to its hard or tangible book value. Book value is established and reported within the balance sheet of a company and is the equivalent of total book value less any intangible assets which often include patents, copyrighted materials and similar non-physical assets. Stocks that trade at an inflated price compared to tangible book value run the risk of leaving an investor with a greater loss-percentage should the traded value suddenly drop.The equation for price to tangible book value is: PTBV = S / TWhere: S = current share price, T = tangible book value (per share)