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
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