Net current asset value per share
What is Net current asset value per share?
Net current asset value per share is a metric used to find undervalued stocks. NCAVPS is calculated by taking a company's current assets and subtracting total liabilities.
Formula:
(Total current assets - Total liabilities - Preferred stock) / Common shares outstanding
What does Net current asset value per share mean?
It is assumed that the investor will find a bargain if they buy stocks where the price is not more than 67% of Net current asset value per share. NCAVPS is mostly used by value investors to find companies that have an attractive valuation.