By VestAI Research | Last updated: March 2026
Book Value Per Share: Meaning, Definition & Indian Stock Market Examples
Net assets (equity) divided by shares outstanding — accounting value per share.
What is Book Value Per Share?
Book Value Per Share = (Total Assets − Total Liabilities) ÷ Shares Outstanding. It represents the net worth of the company on a per-share basis according to its balance sheet. When market price is below book value, a stock is said to be trading at a discount to its intrinsic accounting value.
Book Value Per Share — Indian Stock Market Example
SBI's book value has grown steadily as NPA provisions cleared and profitability recovered. Many PSU companies trade close to or below book value due to low return on equity. Quality companies like Bajaj Finance trade at 5–7x book value because of consistently high ROE.
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Ask Orion: “What is the Book Value Per Share for [stock] and how does it compare to peers?”
Analyse with OrionFrequently Asked Questions about Book Value Per Share
Does book value reflect actual company worth?
Not always. Book value reflects historical cost of assets, which can diverge significantly from current market value — especially for real estate, brands, or technology intellectual property. A consumer brand like HUL has far more economic value than its balance sheet suggests.
When is book value most useful?
Book value is most useful for asset-heavy businesses: banks, NBFCs, real estate companies, and manufacturing firms. For services or technology businesses, intangibles dominate, making book value less meaningful.
Related Terms
PB Ratio
Price divided by book value per share — compares market price to net asset value.
Return on Equity
Net profit as a percentage of shareholder equity — measures capital efficiency.
Enterprise Value
Market cap + net debt — total value of the business regardless of capital structure.
Promoter Holding
Percentage of shares held by founders/controlling shareholders.
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