Citigroup and Tangible Book Value Per Share - TBVPS
In December 2009, I wrote a blog about a "new" fundamental metric Tangible Book Value Per Share - TBVPS and Citigroup ... unfortunately, I can't find it in my MFool blog history ...
This is what I wrote then;
"Tangible Book Value Per Share - TBVPS
A company's tangible book value looks at what common shareholders can expect to receive if the firm goes bankrupt and all of its assets are liquidated at their book values. Intangible assets, such as goodwill, are removed from this calculation because they cannot be sold during liquidation. Companies with high tangible book value per share provide shareholders with more insurance in case of bankruptcy.
Lets look at Citigroup Inc C:NYSE
Cash per share (MRQ) 1.16
$3.86 +$0.0001 0.00% Vol. 272,707,947 Tangible Book Value per share (MRQ) 4.38
Price / tbv = $3.86 / $4.38 = 0.8813
UNDERVALUED - yep ... big time!
.... I will be adding MORE info to this blog on the tbvps of other companies
Tags : MRQ BOOK VALUE C CHK HES ABX KGC"
Soooo, the government sale of Citigroup's stock ... will no doubt be to the market ... and NOT to Citigroup and I expect it'll be the shortsellers lining up to by C's shares to cover their short positions. . .
I'll look for C's updated TBVPS info and post it below.