About

Net Asset Value (NAV) represents the net value of an investment fund or company relative to its outstanding shares. It serves as the primary metric for valuing Mutual Funds, ETFs, and REITs, determining the price at which shares are transacted. Accurate calculation requires a rigorous accounting of all assets-marked to market-minus all liabilities.

This tool functions as a dynamic balance sheet. Unlike simple calculators that demand pre-calculated totals, this interface allows for the itemization of specific accounts (e.g., Cash, Receivables, Long-term Debt). It includes a Scenario Planner, critical for stress-testing portfolios. Investors can simulate market downturns by adjusting asset categories by a percentage (e.g., applying a -10% haircut to Real Estate holdings) to observe the immediate impact on the per-share value. This functionality is essential for risk management and intrinsic value assessment.

Formulas

The core calculation follows the fundamental accounting equation, adjusted for per-share distribution:

NAV = Total Assets − Total LiabilitiesOutstanding Shares

For scenario planning, the adjusted asset value A_adj is calculated as:

A_adj = ∑ (Value_i × (1 + r_i))

Where r_i is the adjustment rate (e.g., -0.05) for asset category i.

Reference Data

Item Category	Typical Inclusions	Valuation Standard (GAAP)
Current Assets	Cash, Cash Equivalents, Accounts Receivable	Face Value / Realizable Value
Investment Securities	Stocks, Bonds, Options, Derivatives	Mark-to-Market (Fair Value)
Fixed Assets	Real Estate, Machinery, Equipment	Book Value less Depreciation (or Appraised Value)
Current Liabilities	Accounts Payable, Short-term Loans, Accrued Expenses	Face Value
Long-Term Liabilities	Mortgages, Bonds Payable, Deferred Tax	Present Value of Future Cash Flows
Outstanding Shares	Common Stock held by investors	Excludes Treasury Stock

Frequently Asked Questions

For open-end mutual funds, NAV must be calculated at least once per business day, typically at market close (4:00 PM ET). Private equity or real estate funds may calculate it quarterly or monthly due to the illiquid nature of their underlying assets.

While NAV reflects the intrinsic value of the underlying assets, the market price is determined by supply and demand on the exchange. This can lead to the ETF trading at a "premium" (above NAV) or a "discount" (below NAV).

Yes. The Scenario Planner accepts negative percentages to simulate market corrections, enabling investors to model "worst-case" scenarios for risk assessment.

Under strict tangible book value assessments, intangibles (like goodwill) are often excluded. However, for a standard GAAP NAV, purchased intangibles are included. This tool allows you to add them as a line item under "Other Assets" depending on your valuation methodology.