Net asset value
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).
Similar valuation methods applied to other entities.