DSE NAV Calculator

What is Net Asset Value (NAV)?

Net Asset Value (NAV) represents the total value of a company's assets minus its total liabilities. In simple terms, it is the "liquidation value" of the company—what would be left for shareholders if the company sold everything it owned and paid off all its debts.

The Importance of NAV in Bangladesh

In the Bangladesh capital market, NAV is a primary metric for certain sectors:

• Mutual Funds: NAV is the single most important metric for closed-end and open-end mutual funds. It represents the market value of the fund's portfolio.
• Banks and NBFIs: Since financial institutions primarily deal with money and liquid assets, their NAV (or Book Value) is a reliable measure of their health.
• Insurance: Similar to banks, insurance companies are often valued based on their asset base.

P/NAV Ratio (Price-to-Book)

The P/NAV Ratio (Market Price / NAV per share) tells you how much the market is paying for every Taka of the company's net assets.

• P/NAV < 1: The stock is trading at a "Discount" to its book value. This is often seen in the Bangladesh mutual fund sector.
• P/NAV > 1: The stock is trading at a "Premium." Investors are paying more than the book value because they expect high future growth or strong brand equity.

Asset Revaluation in BD

In Bangladesh, many older companies (like those in the Textile or Tannery sectors) own land that was purchased decades ago at very low prices. When these companies perform an Asset Revaluation, their NAV can jump significantly, often leading to a spike in share price.