A Tangible Asset is an Asset owned by the business that acn be seen, touched, or felt.
Common examples of Tangible Assets include equipment, office furniture, land, and building. Tangible Assets are recorded as Long-Term Assets on the Balance Sheet of the financial statements.
The higher the Tangible Assets, the less “risky” a business is considered (think of it like a ‘safety net’). It's also worth noting that all Tangible Assets are calculated after depreciation and amortization.
For example, if you own equipment with an initial value of $500,000 and depreciation of the asset is $100,000, the amount that would be considered during the valuation would be $400,000:
$500,000 - $100,000 = 400,000.
This is also known as the Net Book Value (NBV) of the asset.