Net Asset Value (NAV)

This formula is used to calculate a mutual fund's value per share. A mutual fund is a pool of investments that are divided into shares to be purchased by investors. NAV per share is computed once a day based on the closing market prices of the securities in the fund's portfolio.

EXAMPLE:

VirtueTEch, an investment company with a fund of 500,000 shares ,has securities and other assets worth $100 million and has liabilities of $10 million. VirtueTEch investment company's NAV will be $180.