Fundamental Glossary / Valuation Ratios
Net Asset Value (NAV)
Assets minus liabilities, per share or for the whole fund. In India it is the daily price of a mutual fund unit.
Formula
For a company or fund: (assets - liabilities) / units or shares. Mutual fund NAV is published each business day.
What it means
NAV is book equity by another name when the assets are marked to a current value. Closed-end funds, REITs, holding companies, and mutual funds are all discussed in NAV terms because the parts can be priced.
For an Indian mutual fund, NAV is the price at which units are allotted or redeemed, subject to exit load and cut-off times. It moves with the market value of the portfolio.
How to read it
A holding company trading at a large discount to NAV can be cheap if the stakes are real and the discount is likely to narrow. A fund trading at a premium to NAV means you pay more than the assets are worth.
What to watch
Unlisted stakes, property, and level-3 securities inside a NAV are estimates. A stated NAV is not cash you can collect tomorrow if those assets cannot be sold at the marked price.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.