Net-Net (NCAV) Calculator
A net-net trades for less than its net current asset value — the cash and near-cash it holds after paying off every debt. Enter the NCAV per share and the price, or prefill from a ticker.
Enter an NCAV per share and a price — or compute NCAV from the balance sheet above. What a net-net is, and why so few survive, is set out in the full article.
The formula
NCAV = current assets − total liabilities (not just current ones). Divide by shares outstanding for NCAV per share. A stock below that figure is a net-net; Graham's stricter buy point asks for a further third of margin — a price below two-thirds of NCAV per share.
A worked example
NCAV per share of 6, price of 3.50: the price is below two-thirds of NCAV (4.00), so it clears Graham's buy point. You pay 3.50 for 6 of liquid assets net of all debt, and get the business for nothing.
Why so few survive
Most net-nets are cheap because the business is losing money, and losses eat the very asset floor that made it a bargain. The full case — the melting ice cube, net-net working capital, why liquidation rarely comes — is in the net-net article. To screen the market on value and quality, use the free stock screener.
For information and education, not personalized investment advice. Investing carries a risk of capital loss.