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NAV

This query is : Resolved 

14 July 2010 Please tell how we calculate Net Asset Value per share based on Balance Sheet

Regards

Girish Mani

14 July 2010 net asset value per share (NAV)

A valuation of an investment company's shares calculated by subtracting any liabilities from the market value of the firm's assets and dividing the difference by the number of shares outstanding. This factor illustrates the amount a shareholder would receive for each share owned if the fund sold all its assets (stocks, bonds, and so forth) at their current market value, paid off any outstanding debts with the proceeds, and then distributed the remainder to the stockholders. In general, net asset value per share is the price an investor would receive when selling a fund's shares back to the fund. Net asset value per share is similar in concept to book value per share for other types of firms.

14 July 2010 But how the market value of assets can be known thorugh balance sheet?

14 July 2010 your means all the assets & liabilites should be taken at book value.

14 July 2010 The query asked is NAV per share based on Balance Sheet. So i asked how can we know the market value of assets as suggested by you.

Though ur answer is not wrong from general context but query here is different.


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