Tangible net worth is the actual value of tangible assets. Enterprises can use different valuation standards to estimate net tangible assets. The value of an enterprise's tangible assets is the sum of the predicted net cash flows of the enterprise in each year to the present value at the time of estimation according to the department or industry's benchmark rate of return or the set discount rate.
Among them, tangible assets refer to assets in physical form. Tangible assets can be defined in a narrow sense and a broad sense. Tangible assets in a narrow sense generally refer to the fixed assets and current assets of an enterprise, such as inventory, foreign investment, monetary assets, accounts receivable, etc., while tangible assets in a broad sense include all production factors of an enterprise, such as factory buildings, machinery, funds, products, resources, equipment, devices, talent information, etc. In a word, tangible assets are assets in a certain physical form.