Calculating net asset value per share (NAVPS) is a critical step in evaluating the worth of a company’s shares. NAVPS represents the value of a company’s assets minus its liabilities divided by the number of outstanding shares.
NAVPS is a crucial metric for investors as it provides insights into a company’s financial health and intrinsic value. Historically, NAVPS has been used extensively in valuing closed-end funds, which are investment companies that offer a fixed number of shares to the public.