NAV

The net asset value (NAV) of a firm is the amount of money that would be left if it closed, sold its assets and paid its debts. This, divided by the number of shares in issue, gives you the NAV per share.

The NAV is often used to value firms with portfolios of instantly marketable assets, like property firms. Shares are referred to as trading ‘at a premium to’ (above) or ‘at a discount to’ (below) their NAV.

Real-estate investment trusts (REITS) tend to trade at less of a discount to the NAV than real-estate firms would on their own. This is because they allow firms to pool real estate assets that are worth more combined than individually, thereby spreading the risk of one project going wrong and offering predictable revenue.

MoneyWeek magazine

Latest issue:

Magazine cover
Bye bye Britain

Why the rich will leave

The UK's best-selling financial magazine. Take a FREE trial today.
Claim 4 FREE Issues

Which investment platform?

When it comes to buying shares and funds, there are several investment platforms and brokers to choose from. They all offer various fee structures to suit individual investing habits.
Find out which one is best for you.


17 April 1961: America's ill-fated Bay of Pigs invasion begins

On this day in 1961, US troops landed in the Bay of Pigs on the south coast of Cuba in what would become a major embarrassment for America.

The Kids' Portfolio: the four best funds to buy for your children

Investing for your children's long-term future is an excellent idea. But what should you buy? The Kids' Portfolio is a simple collection of four funds intended to be tucked away for 20 to 40 years.