Net Asset Value (Nav)

Net asset value is the total net assets of a company divided by the total number of shares

For example company aldwin has a total asset of 3 million
the company issued 6million of shares
NAV= 3m/6m = $0.50 per share

NAV > mkt price (undervalued)
NAV < mkt price (overvalued)

Now the market price of aldwin is 0.25 cents
means aldwin is undervalued 0.50-0.25=0.25
which means discount of $0.25 or 50%



Now the market perceived aldwin as 0.70 cents which means
aldwin is overvalued at 0.70-0.50= $0.20
which means a premium of $0.20 or 40 percent

I am currently looking at first reits as it is trading at
0.955 while having an nav of 0.98
which is a discount of 0.035 cents