Net Asset Value Per Share - NAVPS
1. The value of a mutual fund share. Calculated by dividing the total net asset value of the fund by its number of outstanding shares.
2. A fundamental analysis indicator that gives an estimate of the value of a fund's shares after all assets are sold and all liabilities are paid off.
Investopedia Commentary
1. In other words, NAVPS is the value of a single unit of a mutual fund. This figure is affected by both its underlying value and market forces. It is important to consider both these factors when buying a mutual fund because the price that the fund investors pay is based on them.
2. The NAVPS is usually below the market price per share because the current value of the fund's assets is higher than the value appearing on the historical financial statements used in the NAVPS calculation.
Related Links
Stock Basics Tutorial
Mutual Fund Basics Tutorial
See also: Asset, Fundamental Analysis, Indicator, Liability, Mutual Fund, Net Asset Value - NAV, Outstanding Shares, Stock
Also spelled: NAVPS