asset value

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Asset value

The net market value of a corporation's assets on a per-share basis, not the market value of the shares. A company is undervalued in the market when asset value exceeds market value.

Asset Value

In stocks, the market value of a company's assets per share. Asset value does not take into account the share price; one calculates the asset value by adding together the total value of the company's tangible and intangible assets and dividing by the shares outstanding. Fundamental analysts may use a company's asset value to determine whether it is undervalued or overvalued. A company with a share price below its asset value is considered undervalued and fundamental analysts may recommend buying shares in that company. On the other hand, a company with a share price above the asset value is overvalued and fundamental analysts may recommend selling it. See also: Net asset value.

asset value

Used to refer to the stock of a company, especially a stock whose price does not necessarily reflect the full value of the firm's assets. This situation may occur when the assets are not producing much current income. See also asset play.
References in periodicals archive ?
Joseph Roxas, president of Eagle Equities Inc., said that at P12 per share, the offering was acceptable based on DM Wenceslao's net asset value (NAV) of about P25 per share.
In the merger, JPC acquired substantially all of the assets and liabilities of JPW in a tax-free transaction in exchange for an equal aggregate net asset value of newly-issued common shares.
At the time of termination, each ETF's property remaining after paying or providing for the relevant ETF's liabilities and obligations will be distributed on a pro rata basis among the ETF's unitholders based on the final net asset value ("Final NAV") per unit of the ETF that is held by such unitholders.
Global Banking News-October 27, 2014--Dutch banks see asset value reduction
"Share repurchases may be a plus for REIT net asset values in the short term, but over time the resultant increase in leverage could impair credit quality," he said.
About 65% of Aker's gross asset value was associated with the oil and gas sector as of 30 June.
It is assumed that the lognormal distribution generates future asset values, so we can utilize the concept of the RNVR developed by Cox and Ross (1976).
News flash: Low interest rates and depressed asset values create an ideal environment for using selected financial and estate planning strategies.
Prior to termination, investors may either redeem units from the trust for their net asset value (NAV) or resell units on the secondary market.
If anything, the record breaking level of M&A activity in 2006 showed that the public market has underestimated REIT net asset values. Experts say that while The Blackstone Group's $36 billion purchase of Equity Office Properties in November seemed like an eye popping price to pay, the private equity giant will likely be able to effectuate an arbitrage by dismantling and selling off the portfolio piecemeal at a profit over the next few months.
All methods require a determination of average asset values within each statutory grouping and the residual grouping computed for the year on the bases of the values of assets at the beginning and end of the year, unless such averaging results in a substantial distortion of asset values (such as significant midyear acquisitions).
* VALUING IP RAISES COMPETITIVE ISSUES over divulging asset values companies might prefer to keep secret.