Book value growth, three years (Book value 3Y)
The compound annual growth of shareholders equity over three years.
Book value plus dividends is the classic measure of what a business built for its owners, and it is the one Berkshire reported for decades.
How it is computed here
Compound annual growth rate of shareholders equity over three years
Computed across several filed fiscal years. Filed under growth. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Buybacks reduce book value while creating value per share, so a good capital allocator can look bad here.
- Ignores dividends paid out, which were also value created.
- Distorted by share issuance, which raises book value without earning it.
Questions
How is book value growth, three years calculated?
Compound annual growth rate of shareholders equity over three years. Computed across several filed fiscal years.
What does book value growth, three years tell a value investor?
Book value plus dividends is the classic measure of what a business built for its owners, and it is the one Berkshire reported for decades.
When does book value growth, three years mislead?
Buybacks reduce book value while creating value per share, so a good capital allocator can look bad here. Ignores dividends paid out, which were also value created. Distorted by share issuance, which raises book value without earning it.