Net Tangible Assets represents the physical assets of a business entity and include assets such as property, plant, and equipment, as well as inventories and cash instruments. To compute the net tangible assets of a business entity, subtract from the total assets the liabilities, intangible assets such as goodwill, patents, and trademarks, all liabilities and the par value of preferred stock. The value of net tangible assets of a business entity is also known as the book value or the net asset value.