Net asset value
In the context of mutual funds, net asset value is the total value of the fund's portfolio less liabilities. The NAV is usually calculated on a daily basis. In terms of corporate valuations, net asset value is the book value of assets less liabilities. The NAV is usually below the market price because the current value of the fund's assets are higher than the historical financial statements used in the NAV calculation. But in the case of for example Liberty Media Corporation, analysts and management has estimated that it's actually trading for 30-50% below its net asset value (or "core asset value"). Chairman John Malone said in a December, 2004 CNBC interview that his company is like a closed end mutual fund that is trading for a discount to its net asset value.
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