Asset Value Per Share

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DEFINITION of 'Asset Value Per Share'

The total value of a fund's investments divided by its number of shares outstanding. This type of asset value per share is more commonly referred to as "net asset value per share" or simply "net asset value" or "NAV." Asset value per share can also refer to a public company's total assets minus its total liabilities, divided by its number of shares outstanding. In this case, asset value per share may be referred to as "net current asset value per share."

INVESTOPEDIA EXPLAINS'Asset Value Per Share'

For most funds, asset value per share is the price at which shares in that fund can be bought and sold. For publicly traded companies, investors can use asset value per share to compare the price of the company's stock to the underlying value of the company's stock. Significant differences between these two numbers can indicate a prudent time to buy or sell.

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RELATED FAQS
  1. What is the difference between a company's book value per share and its intrinsic ...

    Book value and intrinsic value are two ways to measure the value of a company. In simple terms, book value is based on the ... Read Full Answer >>
  2. What is a mutual fund's NAV?

    Net asset value (NAV) represents a fund's per share market value. This is the price at which investors buy ("bid price") ... Read Full Answer >>
  3. What are some examples of general and administrative expenses?

    In accounting, general and administrative expenses represent the necessary costs to maintain a company's daily operations ... Read Full Answer >>
  4. What is the difference between called-up share capital and paid-up share capital?

    The difference between called-up share capital and paid-up share capital is investors have already paid in full for paid-up ... Read Full Answer >>
  5. Why can additional paid in capital never have a negative balance?

    The additional paid-in capital figure on a company's balance sheet can never be negative because companies do not pay investors ... Read Full Answer >>
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