# Net Current Asset Value Per Share (NCAVPS)

A company's current assets per share after subtracting out its total liabilities. This formula was made popular by Benjamin Graham when he pointed out that investors frequently forget to consider a company's asset value per share and obsess only over a company's earnings.

For instance, let's say a company has just reported 20M in quarterly revenues. If investors had been expecting 40M, the stock price would probably take a hit. However, after the stock price drop, we see the stock is now trading less than 66%* of a its NCAVPS.

This means that if a company liquidates all its current assets and paid off all its total liabilities, the value for each stock would still be higher than its current trading price.

* The 66% rule was made famous by Graham's rule that he would only buy a stock that was trading lower than 66% of its NCAVPS.

We calculate NCAVPS as a (current assets - total liabilities) / shares outstanding.