NAV (Net Asset Value) is the per-unit or per-share value of a fund or company, calculated as total assets minus total liabilities, divided by the number of units/shares outstanding.
NAV = (Total Assets − Total Liabilities) ÷ Units Outstanding
For mutual funds, NAV is calculated daily and represents the price at which you buy or sell units. For AIFs and PMS portfolios, NAV is calculated periodically and shows how the portfolio is performing.
For companies (listed or unlisted), NAV per share is equivalent to book value — the net asset per share from the balance sheet.
Why it matters for unlisted shares
For asset-heavy unlisted companies (real estate, NBFCs, holding companies), NAV is often used as the primary valuation benchmark because the assets can be independently valued. A company trading at a discount to NAV may represent a value opportunity; one at a large premium to NAV is priced for earnings/growth expectations.
Example: An unlisted REIT-style entity owned properties valued at ₹1,000 crore against liabilities of ₹300 crore — NAV of ₹700 crore. Shares at ₹600 crore market cap traded at a 14% NAV discount, suggesting undervaluation.