Net asset value (NAV) is a calculation that determines the total value of a company’s assets minus its liabilities. It is an important metric for investors because it provides a snapshot of a company’s financial health. For example, a company with a high NAV may be more attractive to investors than a company with a low NAV.
NAV is calculated by taking the total value of a company’s assets, such as cash, inventory, and property, and subtracting the total value of its liabilities, such as debt and accounts payable. The resulting number is the NAV. NAV can be used to value a company, compare it to other companies, and track its financial performance over time.