What is the difference between book value and earning per share?

I think relook at Book Value as my understanding is more related to value that asset was acquired for (and hence entered into balance sheet - ie "the books").

IT isn't market value nor a stressed liquidation value.

You are correct in terms of what book value and EPS means.

In terms of profitability it will be looking at EPS.

For book value, it is what the company is worth by calculating total assets minus liabilities divided by outstanding shares

eg. You have a house. It is worth 1million. You paid $500,000 and borrowed from the bank $500,000. The book value is $500,000 since if you sell the house for 1million, you will be receiving $500,000 and if outstanding shares is 1.

For EPS, it is what is left after taking revenue minus cost divided by outstanding shares

eg. the company sold $1million worth of goods. After deduct cost of $500,000 and with 1million outstanding shares, the EPS is $0.50

For asset heavy company, you will value them by book value. (REITS, real estate)

For asset light company, you value them by PE
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