Net Current Asset Value

Net Current Assets Value (NCAV) = (Current assets (cash, inventories and accounts receivable) – All Liabilities) / Market value.

All Liabilities = (Total Assets - Common Shareholders Equity).

As you can see it is not a value but a ratio, and the higher its value (NCAV is greater than market value) the more undervalued the company is.

 

Use it to find net-net investment ideas

You can use this ratio to find net-net investment ideas as defined by Benjamin Graham.

The following articles show you exactly how:

Why and how to implement a net-net investment strategy world-wide

Time to start looking for net-nets?

 

How to use the ratio

Available as a screening ratio: Yes

Available as an output column ratio: Yes (Look for it under the Valuation heading)

 

How to select the most undervalued companies

To find undervalued companies with the highest Net Current Asset Value / MV set the slider from 0% to 10%.

 

Click here to start using the Net Current Asset Value (NCAV) Ratio in your portfolio NOW!