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VARIATIONS However, while the above definition is simple, there are many different types of entity, and different ways of measuring the value of assets and liabilities. In the context of Collective Investment s ( Mutual Funds ), ''net asset value'' is the total value of the fund's portfolio less Liabilities . The NAV is usually calculated on a daily basis. In terms of corporate valuations, ''net asset value'' is the value of Assets less Liabilities . And, to give an indication of what we could mean by the ''value of assets'', consider some of these variations. Each one achieves something slightly different, and is applied in different ways. USAGE Investors might want to know if a company is cheap or expensive to invest in. One possibility is to compare its current Market Capitalization with its ''net asset value'' - since, all things being equal, one might expect them to be the same. There are reasons why this might not be true.
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