Net Current Asset Value

NCAV is the company’s current assets minus its total liabilities. This gives an additional margin of safety versus book value - on this valuation measure, one is essentially paying nothing for all the fixed assets (buildings, machinery, etc), or any goodwill items that may exist.

Stockopedia explains NCAV

Benjamin Graham's thinking behind the net current asset value, was that he wanted to know what a company would be worth in a liquidation. NCAV values only current assets and ignores all fixed or intangible assets (buildings, machinery, goodwill etc), assuming they would be worth nothing in a liquidation scenario.

Graham showed that if he could buy companies trading at a value of less than their NCAV, he would essentially be getting a huge margin of safety. This is because the fixed and intangible assets were essentially thrown in for free, and there is a good chance they are not worthless.

We provide a 'Liquidation Value' in the margin of safety section of the Stock Report that indicates the discount/premium to NCAV.

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The 5 highest NCAV Stocks in the Market

KRX:005930Samsung Electronics Co105017234.0081
KRX:011200HMM Co9117609.0081
KRX:012330Hyundai Mobis Co8013691.0099
KRX:018260Samsung SDS Co4356223.8089