How does Moneycontrol calculate the book value (and hence the P/B ratio) of a company?

[truthseekerisabeau]

Different websites and/or screeners show different "book value/share" of the same company...I wonder what source do they use so as to come to different values?

Also afaik you can see book value only in the annual report of a company which is released in March every year so do we have to rely on that book value throughout the year coz the company's financials keep changing throughout the year...So relying on a old book value (from previous year's financial report) to calculate the current P/B ratio of a company doesn't seem very reliable.

 

[resjudicata]

@truthseekerisabeau Balance sheet is published on a quarterly basis. Maybe someone uses the annual report and some use the latest balance sheet. Also their formula may be slightly different

 

[resjudicata]

@truthseekerisabeau From the balance sheet. You can do assets - liabilities and maybe there's a more elaborate formula. But the idea is to get what remains if you pay off all loans etc. and what remains is your book value.

 

[truthseekerisabeau]

@resjudicata That I know...my question is that does moneycontrol use the same book value that can be calculated from previous year's annual report (balance sheet part)?

Because when I checked the book value of the same company, it was different on different stock screeners and it was different from the book value you see on the balance sheet in 2022-23 annual report!

 

[budsmama]

@truthseekerisabeau P/B ratio changes every time the "price" changes. Book Value is relatively stable but price changes hence the ratio changes.