What is Net Asset Value Per Share (NAVPS)?

NAVPS ( Net Asset Value Per Share)

The Net Asset Value (NAV) represents the net value of the company. To calculate this Net asset to be determined first. The net assets value of the entity is calculated by subtracting the total value of liabilities from the total assets of the company. The results obtained after subtraction will be divided by the number of shares and NAVP (net asset value per share) can be obtained.

The Net asset value is commonly used to identify potential investment opportunities within mutual funds, ETFs, or indexes. The ratio can also be used to view the holding in the own portfolio.

The basic difference between a mutual fund NAV and stock price is that NAV will not change throughout the day as a stock price will. The NAV is updated at the end of each trading day. So, when you purchase a mutual fund at a listed NAV price, that listed price is actually the price as yesterday’s close.

Net Asset Value Per Share (NAV) is the price per share of the fund. The metric is used to assess the value of a real estate investment trust (REIT), and it indicates the worth of a mutual fund or exchange-traded fund. The NAVPS is obtained by dividing the net asset value of a mutual fund by the number of outstanding shares.

Formula of NAVPS

The following formula is used to calculate Net Assets Value per share:

NAV = (Assets – Liabilities) / Total number of outstanding shares

Intangible Assets like goodwill are also treated as assets to calculate NAVPS but sometimes it is excluded from the calculation because it may inflate the price of the share and investors may not accept the calculated price.


In simple words, NAVPS is the market value of the securities for each unit held by the scheme. Since the market value of securities changes every day, the NAVP of a scheme also varies on day to day basis. NAV is calculated each day by taking the closing market value of all securities owned plus all other assets such as cash, subtracting all liabilities, then dividing the result (total net assets) by the total number of shares outstanding.

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