Book value

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Anil (Querist)
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20 January 2017 Hi and Greetings for the day..

I just want to know -how many ways a firm book value grow apart from EPS. if any other ways pl explain

Thanks in Advance

CA S K MISHRA

CA S K MISHRA (Expert)
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04 March 2017 Book value is a measure of all of a company's assets: stocks, bonds, inventory, manufacturing equipment, real estate, etc. In theory, book value should include everything down to the pencils and staples used by employees, but for simplicity's sake companies generally only include large assets that are easily quantified

For Manufacturing companies depreciation can affect book value. The resale value for equipment usually goes down faster than a company is required to depreciate it under accounting rules.

In case of Financial assets which are not prone to depreciation, the Mark-to-Market (MTM) rules can overstate book value during bull market & understated during bear market. This impact book value of a company.