Book Value

What it is

Book value per share = (total equity − preferred equity) / diluted shares outstanding. It's the accounting value of what would remain for shareholders if the business were wound up tomorrow at the values on its balance sheet.

Why it matters

For asset-heavy businesses (banks, REITs, industrials) book value is a meaningful floor on price. For asset-light businesses (software, brands) book value understates real value because intangibles aren't fully captured.

Price-to-Book

P/B = price / book value per share. It tells you how much the market is paying above accounting value. A P/B below 1.0 can mean a bargain — or an impaired business.

How Cowry uses it

The ROE/Book-Value engine projects book value forward at the sustainable growth rate (ROE × retention) and discounts it back at cost of equity, producing a low/mid/high estimate range to bracket the answer.