Net Asset Value (NAV)

NAV is the total value of fund assets minus liabilities, representing the net worth attributable to investors, typically calculated quarterly by independent valuers.

NAV CalculationComponent
Property valuesSum of all property appraisals
Plus: Cash and equivalentsBank balances, short-term investments
Plus: Other assetsReceivables, prepaid expenses
Minus: DebtAll mortgages and loans
Minus: Other liabilitiesPayables, accrued expenses
Equals: NAVNet value for all investors
NAV per shareNAV / Total shares outstanding
NAV UsesApplication
Performance measurementTrack value creation over time
Management fee baseFee calculated on NAV (some funds)
Investor reportingQuarterly NAV statement
Secondary sale pricingLP interests trade at NAV discount/premium
Redemption pricingBasis for share buybacks if permitted
Valuation frequencyQuarterly for funds, daily for REITs

Related Terms

Gross Asset Value (GAV)Bank ValuationMarket ValuationProperty ValuationFund ValueMark-to-Market Performance Measurement

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