What is NAV Per Share?
NAV Per Share (NAVPS) represents the total value of a mutual fund, ETF, or REIT, expressed on a per-share basis.
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In the context of mutual funds, the net asset value (NAV) is the current market value of the fund’s portfolio and others assets, net of any liabilities.
In short, the net asset value (NAV) is the difference between the value of a fund’s assets and liabilities.
From there, the NAV per share (NAVPS) can be determined by dividing the net asset value of a fund by the total number of shares (or units) outstanding.
For the investment community, such as investors in mutual funds, the NAV per share is a method to monitor the performance of a given fund.
Because of the regulations and oversight by the SEC, mutual funds must provide full transparency with regard to performance and publicly disclose the current value of their portfolio to investors every trading date.
NAV Per Share Definition (Source: SEC Glossary)
The formula to calculate the NAV per share (NAVPS) of a fund starts by subtracting total liabilities from total assets to determine the net asset value (NAV), which is then divided by the total fund shares outstanding.
The “Total Assets – Total Liabilities” component represents the mutual fund’s net asset value (NAV).
Given the net asset value (NAV) of the fund, the next step is to divide by the total number of shares outstanding to convert the NAV into a metric expressed on a per-share basis.