NAVPS

NAVPS stands for net asset value per share. It is a common metric used to express the value of a single share of a fund’s assets after liabilities. The figure reflects what a fund’s investors would theoretically receive per share if the fund were liquidated, and it also serves as the price at which fund shares are issued or redeemed for open-end funds.

Calculation is straightforward: NAVPS equals (total assets minus total liabilities) divided by the number of outstanding shares. Assets include the fund’s securities, cash, receivables, and other holdings; liabilities include accrued expenses and other obligations. For mutual funds and similar vehicles, the calculation is typically performed at the end of each trading day.

NAVPS is used in practice as the price at which investors buy or redeem shares in open-end funds. Closed-end funds, by contrast, may trade on a market price that deviates from their NAVPS, resulting in premiums or discounts to NAVPS.

Example: If a fund has assets of 150 million dollars, liabilities of 5 million dollars, and 12 million shares outstanding, the NAVPS would be (150 − 5) / 12 = 12.08 dollars per share.

Limitations include the fact that NAVPS is a snapshot based on valuing the fund’s assets, which can involve subjective judgments for illiquid or hard-to-value holdings. It does not guarantee liquidation value and can change with asset valuations, fees, and capital activity. NAVPS is a central concept in fund accounting and reporting and is distinct from, though related to, a fund’s market price.