Price to Tangible Book Value serves as a conservative estimation of the value inherent in a share, without Goodwill and other intangibles (opposite of tangibles) factored in.

Price to Tangible Book Value (PTBV) is a ratio of the share price over the Tangible Book Value of a company and helps investors see what inherent value is present on a company's books. The Tangible Value does not include goodwill, patents, and other intangible values.

If the company was liquidated, the PTBV gives the investor an idea of what percentage of the current price they might expect to receive in such a worst-case scenario.

Lower PTBV indicates that shares may be priced closer to their real value in the long-term, but this does not always apply.

Why Do You Want to Own the Shares of a Publicly Traded Corporation?
What is Book Value?