Net asset value (
NAV) is the value of an entity's
assets minus the value of its
liabilities, often in relation to
open-end or
mutual funds, since shares of such funds registered with the
U.S. Securities and Exchange Commission are redeemed at their net asset value. This may also be the same as the
book value or the
equity value of a business. Net asset value may represent the value of the total equity, or it may be divided by the number of
shares outstanding held by investors, thereby representing the net asset value
per share.