Net asset value per share (NAVPS) is determined by taking the total net asset value of a fund or company and dividing it by the number of shares that are currently outstanding. This is also referred to as book value per share.
How to Calculate Net Asset Value Per Share
NAVPS is determined by taking the net asset value and dividing it by the total number of shares that are currently outstanding. The formula for calculating NAVPS is:
Net Asset Value Per Share = NAV / Share OutstandingNAV = Assets - LiabilitiesThe Example
Think about a mutual fund that has 7.5 million shares available, with a total of $500 million invested. It also holds $15 million in cash, $1.5 million in receivables, and $250,000 in accrued income. On the liabilities side, the fund has $20 million in short-term debts and $5 million in long-term debts. Additionally, it has $35,000 in accrued operational costs and $15,000 in other accrued expenses.
Conclusion
Also known as book value per share, the net asset value per share (NAVPS) is the value per share of a mutual fund, ETF, or closed-end fund. It is declared once a day after the close of the U.S. stock market, though the actual market price per share of a particular fund may be higher than its NAVPS.