Net asset value

Intrinsic value is a business management concept in the field of business valuation. It denotes a value approach, which mainly results from the investigation of the company's balance sheet. Purpose, the assets of the company will be evaluated against criteria such as the market value, replacement value or liquidation value. The value of total assets is reduced by provisions and liabilities., - If present - the debt attributable share of special items deducted in accounting in accordance with the German Commercial Code (HGB ) are also corporations in addition equity minority interests.

Under an asset value method refers to the determination of the value of a company based on its intrinsic value.

A common calculation method for determining an asset value for financial reporting and financial analysis is the Net Asset Value (NAV) (English Net Asset Value ( NAV) ).

Practical Application

In the business valuation today earnings method are mainly used.

Applications for asset value method, in addition to the valuation of a company to be liquidated all cases in which high level of hidden reserves or closing date unrealized losses are regularly available. This applies especially to the real estate and investment companies. Here, the intrinsic value provides a better indication of the actual value of the company as of the balance sheet carrying amount.

Net asset value ( investment funds)

The net asset value ( NAV, English net asset value, NAV, . Well share value, asset value or intrinsic value called ) of a fund unit corresponds to the divided by the number of the units in the Fund's net assets. For most funds, this value is calculated daily and often constitutes the basis for the settlement of the purchase or sale of fund shares