08 July 2013

Net Tangible Asset (NTA) VS Net Asset Value (NAV)

Net Tangible Asset is the Net Asset Value deducted by Intangible Asset. 

Intangible asset can be goodwill that occurred after the group acquired subsidiaries above its book value / reasonable price. Or it could be a discounted future value from projects on hand, depending on how management judge for it. The company has right to revalue the intangible asset and discount it by amortization on annual basis. 

In general, I prefer NTA over NAV, as it could prevent me from over state the book value of the company. I had encountered one company with negative NAV but positive NAV and the company went bankruptcy eventually. So we should always take into account both NTA and NAV before we make any investment decision. 

ROE could be also affected as the formula stated as (Net Earning / Average Equity), where by Equity actually could be treated as NAV (Asset - Liabilities). If we replace the Equity figure by NTA, the RONTA (Return On Net Tangible Asset) could be higher than ROE if the difference of NAV and NTA is significant. 

Nonetheless, this is just my thought now. Welcome to let me know your thought here. 


  1. in the 3rd Paragraph, you wrote "I had encountered one company with negative NAV but positive NAV..."
    I think what you actually meant was negative NTA but positive NAV, right?

  2. Our property valuation service analyses your property based on a number of factors and provides you with an instant property valuation. Don't wait, visit www.valsvic.com.au

  3. Use Moss & Colella to hire a local civil rights lawyer to protect your rights or help you recover damages. Don't forget to visit our website.

  4. Thanks for the post and great tips..even I also think that hard work is the most important aspect of getting success Johnny Depp net worth

  5. What a fantabulous post this has been. Never seen this kind of useful post. I am grateful to you and expect more number of posts like these. Thank you very much. Johnny Depp net worth

  6. Nice post. I was checking constantly this blog and I am impressed! Extremely helpful information specially the last part I care for such info a lot. I was seeking this particular information for a very long time. Thank you and good luck. hashtag for instagram likes and followers app

  7. The personality of the agent is important. Choose a Realtor who makes you feel confident they will get the job done. I suggest sidedishmedia.co.uk to everyone!

  8. Resource Protection alludes to shielding a people and organizations from common decisions by utilizing strategies, frameworks, methods and techniques created from legal law (directed by Congress or state councils) and customary law dependent on court choices.itin number


Related Posts Plugin for WordPress, Blogger...

View All My Posts Here