---
title: "Definition of NCAV"
url: https://signalscreener.fr/definition/ncav/
markdown_url: https://signalscreener.fr/definition/ncav.md
description: "A conservative measure of liquidation value: current assets minus ALL liabilities, divided by shares outstanding."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "NCAV"
  - "Net Current Asset Value"
translations:
  de: https://signalscreener.fr/de/definition/ncav.md
  es: https://signalscreener.fr/es/definition/ncav.md
  fr: https://signalscreener.fr/fr/definition/ncav.md
---

# Net Current Asset Value

## What is NCAV?

A conservative measure of liquidation value: current assets minus ALL liabilities, divided by shares outstanding.

## Think of it like this

Like calculating what you could sell quickly (cash, inventory) minus everything you owe - the 'fire sale' value per share.

## Formula

```
NCAV = (Current Assets - Total Liabilities) ÷ Shares Outstanding
```

- **Current Assets**: Cash, receivables, inventory
- **Total Liabilities**: All short and long-term debt
- **Per Share**: Divided by shares outstanding

## Why it matters

- Benjamin Graham's deep value metric
- Stocks trading below NCAV are 'net-nets'
- Provides margin of safety
- Ignores fixed assets entirely

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| Stock < NCAV | Deep Value | Trading below liquidation value |
| Stock < 2× NCAV | Value | Potential value opportunity |
| Stock > 2× NCAV | Normal | No margin of safety from NCAV |
| Negative NCAV | N/A | Liabilities exceed current assets |

## Real-world example

A stock at $10 with NCAV of $12 is a 'net-net' - you're paying less than liquidation value.

---

This is educational content, not financial advice.

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