What is the meaning of NAVPS

nkalansu · 1 Re: What is the meaning of NAVPS Sat Jun 25, 2011 8:09 pm

nkalansu

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akram199 wrote:WHAT IS THE MEANING OF NAVPS? what you all think of export of coir product to europe?

NAVPS = Equity attributable to the shareholders of the company
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Total number of issued shares

This means how much of assets available for the shareholders of the company net of all the outside liabilities (Trade debt, Bank debt, other debts, other outside obligations....etc.). In simple terms it is the net worth of the company per share.

So as an example.... if a stock has a NAVPS of Rs. 15/= and if it has a Market price of say Rs. 200/= then you have to think twice about buying that stock. Too risky.

But it depends on the particular sector. And also if the company is having a great ability to generate cash flow then it may have a higher price. For example take LLUB (caltex). The company is very popular for paying dividends in every quarter and considered as an income stock. Its price is Rs. 158 - 160 currently. However its NAVPS is Rs. 22 as at 31.03.2011. So as i said it depends on the stock and the industry.

Disclosure : I do not hold LLUB (caltex)

rijayasooriya · 2 Re: What is the meaning of NAVPS Sat Jun 25, 2011 8:14 pm

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NAVPS-----Net Asset Value Per Share

wallstreet · 3 Re: What is the meaning of NAVPS Sun Jun 26, 2011 7:53 pm

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akram199 wrote:WHAT IS THE MEANING OF NAVPS? what you all think of export of coir product to europe?

NAVPS = Net Asset Value per share

NAVPS = (Total Assets- Total Liabilities) / Total No of Issued shares

However, the term may also be used as a synonym for book value or the equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of shares outstanding held by investors and, thereby, represent the net asset value per share.