How to Calculate Net Asset Value

The net asset value (NAV) formula is widely used in calculating a mutual fund's value per share.

Formula:
Net asset value = total assets – intangible assets – total liabilities
Net asset value per share = NAV / total outstanding shares

Learn how to calculate net asset value with the following examples:

Example 1:
If the net assets of a fund are $10 million, and the fund holds 2 million shares. Then, the NAV per share = $5 ($10 million / 2 million).

Example 2:
YTC Corporation has total assets of $3,500,000 (including intangible asset $500,000) and total liabilities of $1,000,000. The calculation for net asset value of ABC corporation is as follows:

NAV = total assets – intangible assets – total liabilities = 3,500,000 - $500,000 - $1,000,000 = $2,000,000

Example 3:
A mutual fund has total assets of $2,800,000, liabilities of $800,000, and 200,000 outstanding shares. Then, the NAV per share = (2,800,000 - 800,000) / 200,000 = $10

* Next: Return on Net Assets (RONA) Ratio Analysis

Author

Kelvin Wong Loke Yuen is a highly experienced education writer. He has obtained many certifications from the UK, USA, Australia and Canada, including an MBA and a Postgraduate Diploma from Heriot-Watt (UK's World-Class University) and a BCom degree from Adelaide (Australia’s Group of Eight University). Follow him on: LinkedIn