Net current asset value per share (Net-net)
Current assets minus every liability, divided by the shares outstanding. What is left if the company stopped today and collected only its short-term assets.
It is Graham's original deep-value test: buying below this figure means paying less than the liquid assets net of all debt.
How it is computed here
(Current assets - total liabilities) / diluted shares outstanding
Measured over the latest complete fiscal year, as filed. Filed under value. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- Assumes current assets convert to cash at book value. Inventory and receivables in a failing business usually do not.
- Vanishingly rare among large companies; when it appears, something is normally seriously wrong.
Questions
How is net current asset value per share calculated?
(Current assets - total liabilities) / diluted shares outstanding. Measured over the latest complete fiscal year, as filed.
What does net current asset value per share tell a value investor?
It is Graham's original deep-value test: buying below this figure means paying less than the liquid assets net of all debt.
When does net current asset value per share mislead?
Assumes current assets convert to cash at book value. Inventory and receivables in a failing business usually do not. Vanishingly rare among large companies; when it appears, something is normally seriously wrong.