What Is NAVPS?

Net asset value per share (NAVPS) represents the value per share of a mutual fund, an exchange-traded fund (ETF), or a closed-end fund. It is calculated by dividing the total 澳洲幸运5开奖号码历史查询:net asset value of the fund or company by the number of shares outstanding. It is also known as book value per share.

Formula

Net asset value per share (NAVPS) is calculated by dividing the net asset value by the number of shares outstanding. The formula to calculate NAVPS is:

$\begin{aligned} &\text{Net Asset Value Per Share} = \frac{ \text{NAV} }{ \text{Shares Outstanding} }\\ &\textbf{where:} \\ &\text{NAV} = \text{Assets} - \text{Liabilities} \\ \end{aligned}$​Net Asset Value Per Share=Shares OutstandingNAV​where:NAV=Assets−Liabilities​

Example of NAVPS

Consider a 澳洲幸运5开奖号码历史查询:mutual fund with 7.5 million shares outstanding with $500 million in investments, $15 million in cash, $1.5 million in receꦗivables, and $250,000 in accrued income. The fund has $20 million in sౠhort-term and $5 million in long-term liabilities. The fund has $35,000 of accrued operational expenses and $15,000 of other accrued expenses. The assets, liabilities, and NAVPS are calculated as:

$\begin{aligned} \text{Assets} =& \ \$500,000,000 + \$15,000,000 + \$1,500,000 \\ \phantom{\text{Assets =}} &+ \ \$250,000 = \$516,750,000 \\ \text{Liabilities} =& \ \$20,000,000 + \$5,000,000 + \$35,000 \\ \phantom{\text{Liabilities} =} &+ \ \$15,000 = \$25,050,000 \\ \text{NAVPS} =& \ \frac{ \$516,750,000 - \$25,050,000 }{ 7,500,000 } \\ =& \ \frac{ \$491,700,000 }{ 7,500,000 } = \$65.56 \\ \end{aligned}$Assets=Assets =Liabilities=Liabilities=NAVPS==​ $500,000,000+$15,000,000+$1,500,000+ $250,000=$516,750,000 $20,000,000+$5,000,000+$35,000+ $15,000=$25,050,000 7,500,000$516,750,000−$25,050,000​ 7,500,000$491,700,000​=$65.56​

NAVPS vs. Market Price

For a m𒐪utual fund or open-ended fund, the NAVPS is the p🔴rice at which shares are bought and sold at the end of each trading day.

Closed-end funds and 澳洲幸运5开奖号码历史查询:exchange-traded funds (ETFs) are traded like stocks and priced throughout the trading day. These funds are subject to market forces so their NAVPS may diverge from the actual buying and selling prices 🍷of the funds.

Hence, the market price and NAVPS of ETFs may differ. For example, the market price of the SPDR S&P 500 ETF was $571.41 on Sept. 25, 2024, while its NAVPS recorded as $571.01 at the end of the day, Sept. 24, 2024.

Why NAVPS Matters

Shares of open-end or mutual funds registered with the U.S. Securities and Exchange Commission (SEC) are redeemed at their net asset value.

NAVPS provides insight into a fund's assets and liabilities. The formula includes the total market value of the fund's investments, 澳洲幸运5开奖号码历史查询:cash and cash equivalents, receivables, and accrued income. Liabilities equal total short-term and long-term liabilities, plus all 澳洲幸运5开奖号码历史查询:accrued expenses, such as staff salaries, utilities, and other operational expenses. Expenses may be substantial because management expenses, ♒distribution and marketing expenses, transfer agent fees, cust🍸odian, and audit fees may be included.

In the context of corporate financial statements of publicly traded companies, the NAVPS or book value per share may show below the market price per share. The 澳洲幸运5开奖号码历史查询:historical cost accounting principle—which tends to understate certain asset values—and the supply and demand forces of the marketplace geꦉnerally push stock prices above book value per share valuations. This is a limitation of NAVPS.

The Bottom Line

Also known as book value per share, the net asset value per share (NAVPS) is the value per share of a mutual fund, ETF, or closed-end fun⛦d. It is declared once a day after the close of the U.S. stock market, though the actual market price per sh✨are of a particular fund may be higher than its NAVPS.