Net asset value: Difference between revisions
From ACT Wiki
Jump to navigationJump to search
imported>Administrator (CSV import) |
imported>Doug Williamson m (Spacing 21/8/13) |
||
| Line 1: | Line 1: | ||
(NAV). | (NAV). | ||
1. | 1. | ||
A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities. | A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities. | ||
| Line 6: | Line 8: | ||
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values. | The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values. | ||
Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet). | Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet). | ||
2. | 2. | ||
Similar valuation methods applied to other entities. | Similar valuation methods applied to other entities. | ||
== See also == | == See also == | ||
* [[Accumulating net asset value]] | * [[Accumulating net asset value]] | ||
* [[Book value]] | * [[Book value]] | ||
Revision as of 15:44, 21 August 2013
(NAV).
1.
A method of valuing a business which is based on the sum of the values of each of its assets, less its total liabilities.
The current balance sheet of the business would normally be the starting point for a net asset valuation.
The (starting) book values of assets and liabilities in the balance sheet are then appropriately adjusted to reflect relevant current market values.
Further adjustments are then made for the addition of any other relevant assets and liabilities (not reflected in the starting balance sheet).
2.
Similar valuation methods applied to other entities.
