Onset of Bear Market And/Or Value Investing?

If someone were to ask me for a target of Sensex in April 2009, I would say

Pessimistic target: 13800 (12 times FY 2010 eps).
Fair target: 17250 (15 times FY 2010 eps).
Optimistic target: 20700 (18 times FY 2010 eps).
I read Alchemist's views on world's major indices how they are heading for/into a bear market. If this is just the beginning of such a market then returns from investment in markets would not be much attractive.

Also if bear market is just beginning I suppose it to last few months to few quarters. In such situation I guess sensex will find it tough to give some returns esp during the last stages where all would be selling and then would be a gradual rebuild process.

So 2009 would be a ordinary year in terms of ROI (who knows even a FD may give better returns .. :p).

To find value picks
My question is where to find/determine the book value of a company?

After that is found I guess the earnings of the company over a period of 5-10yrs would give us a estimate of where one can see a real value in a stock to buy.

This may be raw Fundamentals but people who know more can fine tune this post as and when they have details and time so people can pick stocks at valuable prices.