Net-Net

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Dictionary Says

Definition of 'Net-Net'

A value investing technique in which a company is valued solely on its net current assets. The net-net investing method focuses on current assets, taking cash and cash equivalents at full value, reducing accounts receivable for doubtful accounts, and reducing inventories to liquidation values. Total liabilities are then deducted from the adjusted current assets to get the company's net-net value. This method was introduced by Benjamin Graham
Investopedia Says

Investopedia explains 'Net-Net'

Graham used this method back when financial information was not as readily available, valuations as a whole were very low and net-nets were much more prevalent in the market. When a viable company is identified as a net-net, it is about as close to a sure thing as you can get in the markets. These special occurrences are now basically non-existent in the market, but Graham's theories on valuing a company based on tangible assets remain useful.
Search results for

'Net-Net'

  • The Case For Cheap Stocks

    http://stocks.investopedia.com/stock-analysis/2009/A-Case-Can-Be-Made-For-Cheap-Stocks-IWC-SIG-KFT-CAG-HNZ1223.aspx
    ... A recent post about stocks trading below their net net working capital (NWC) caught
    my attention. ... Major Food Companies and Net Net Working Capital. Company. ...

  • Take On Risk With A Margin of Safety

    http://www.investopedia.com/articles/financial-theory/08/margin-of-safety.asp
    ... sheet. At its heart, Graham's net-net investing is the most conservative
    value approach, and involves very little risk if done right. ...

  • Tax-Loss Harvesting: Reduce Investment Losses

    http://www.investopedia.com/articles/taxes/08/tax-loss-harvesting.asp
    ... Thus, your net-net after-tax return would now be 14% (9% + 5%). (Read more about
    taxes affecting your investments over the long haul in A Long-Term Mindset ...

  • CFA Level 1 Study Guide - Corporate Finance - The Cost of Capital ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/cost-of-capital.asp
    Sign In• Register• Free Annual Reports • Free Newsletters. Dictionary;
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  • Stock-Picking Strategies: Value Investing | Investopedia

    http://www.investopedia.com/university/stockpicking/stockpicking3.asp
    ... undervalued. Narrowing It Down Even Further One well-known and accepted
    method of picking value stocks is the net-net method. This ...

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