Fundamental Glossary / Growth Metrics
Book Value Growth
The percentage change in book value, or book value per share.
Formula
(Ending book value per share - starting book value per share) / starting book value per share.
What it means
Book value grows when the company earns more than it pays out, and when it issues shares above book. It falls with losses, dividends, buybacks, and some accounting charges through equity.
Per-share growth is the owner's version. Total book value can rise because new shares were issued, which does not help the old share.
How to read it
Over long periods, book value per share plus dividends received is a rough account of what the business did for its owners, before any change in the multiple the market pays.
What to watch
Revaluations, bargain-purchase gains, and accounting changes can lift book value without a rupee of retained operating profit. Prefer growth in tangible book value from retained earnings.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.