Editing Book value (section)

==Tangible common equity==
A variation of book value, [[tangible common equity]], has recently come into use by the U.S. federal government in the valuation of troubled banks.<ref name = "WSJ-2/23/09">"US Eyes Large Stake in Citi", ''The Wall Street Journal'', 23 February 2009,</ref><ref name = "NYT-2/24/09">"''Stress Test for Banks Exposes Rift on Wall St.". ''The New York Times'', 24 February 2009,</ref> Tangible common equity is calculated as total book value minus [[intangible asset]]s, [[goodwill (accounting)|goodwill]], and [[Preferred stock|preferred equity]], and can thus be considered the most conservative valuation of a company and the best approximation of its value should it be forced to liquidate.<ref name = "wikinvestTCE">[https://www.wikinvest.com/Tangible_Common_Equity_%28TCE%29 Tangible Common Equity via Wikinvest]{{dead link|date=May 2024|bot=medic}}{{cbignore|bot=medic}}</ref>

Since tangible common equity subtracts preferred equity from the tangible book value, it does a better job estimating what the value of the company is to holders of specifically ''common'' stock compared to standard calculations of book value.