How to calculate net asset value per share? An article to understand the key indicator for stock selection

2026-01-05 17:02:25

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In stock investing, “how to calculate net asset value per share” is a question frequently asked by many novice investors. Net Asset Value Per Share (NAVPS) may seem complicated, but it actually just involves dividing the total asset value of a company evenly among all its shares. In simple terms, this indicator represents the actual net worth of assets behind each share.

The essence of NAVPS: assets divided by the number of shares

To understand how to calculate NAVPS, you first need to grasp a basic concept: Company net assets = total assets - total liabilities.

Imagine a company being liquidated: first, all debts are paid off, employee wages and various expenses are settled, and the remaining money is the net assets. This amount is then evenly distributed among all shareholders, and each shareholder receives their share as the NAVPS.

From this perspective, NAVPS actually reflects: if the company were to go bankrupt and liquidate now, how much would each share theoretically be worth.

How to calculate NAVPS? Three formulas to help you understand

Basic formula

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