Net Asset Value Per Share (NAVPS): Meaning and Example

Net asset value per share (NAVPS) divides total net asset value by the number of shares outstanding. It expresses the underlying asset backing on a per-share basis.

How It Works

NAVPS matters for funds, investment companies, and some asset-heavy businesses because it helps investors compare per-share market price with per-share underlying asset value. Premiums and discounts often become easier to interpret once the total value is stated per share.

A common form is:

NAVPS = net asset value / shares outstanding

Worked Example

If a fund has a total NAV of $250 million and 10 million shares outstanding, its NAVPS is $25.

Scenario Question

An investor says, “NAVPS and market price per share must always match.”

Answer: No. The market can price a security above or below its per-share net asset value.

Related Terms

• Net Asset Value (NAV): NAVPS is the per-share version of total net asset value.
• Indicative Net Asset Value (iNAV): iNAV is an intraday estimate related to the same underlying concept.
• Market Value: Market price can trade at a premium or discount to NAVPS.