Tangible book value is the value of shareholders' equity less net fixed assets.
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The replacement cost approach to valuation of a target firm ignores value created by operating the assets in combination as a going concern.
Valuations of target firms based on the comparable companies and recent transactions methods must be adjusted to reflect control premiums.
If the tangible book value of a firm significantly exceeds its market value for an extended period of time, it can become an attractive takeover target.
Liquidation value is the projected sale value of a firm's assets.