Definition
NAV represents the per-share intrinsic value calculated by dividing net assets by shares outstanding. For mutual funds and ETFs, NAV is calculated daily. For closed-end funds, the market price can trade at a premium or discount to NAV. For REITs and holding companies, NAV analysis helps assess whether shares trade above or below the underlying asset value.
functions Formula
NAV = (Total Assets − Total Liabilities) / Shares Outstanding
lightbulb Example
A fund has $500M in assets, $10M in liabilities, and 20M shares. NAV = ($500M - $10M) / 20M = $24.50 per share.
verified_user Key Points
- Mutual fund shares transact at NAV
- Closed-end funds can trade at premium or discount to NAV
- REIT NAV estimates underlying property values
- NAV discount may indicate a buying opportunity