Valuation Glossary

Net tangible asset value (NTAV) is a financial measure used to determine the net value of a company's physical assets, such as property and equipment, after subtracting liabilities and intangible assets. It represents the value of a company's assets that can be easily liquidated. A high NTAV indicates that a company has a strong asset base, while a low NTAV may indicate that a company is heavily reliant on intangible assets or has a high level of debt. This measure is important to assess a company's financial health and performance.

Net present value (NPV) is a financial measure used to compare the present value of expected cash inflows to the present value of expected cash outflows for an investment or project. It considers the time value of money, meaning that a dollar received in the future is worth less than a dollar received today. If the net present value is positive, it means the investment is expected to be profitable, while a negative net present value indicates that it's not profitable. NPV is an important tool for evaluating investment projects.

Net Operating Assets (NOA) refer to the total operating assets of a company minus its operating liabilities.

Net Invested Capital (NIC) refers to the total amount of capital that has been invested in a business by its owners and creditors, net of any cash and cash equivalents.

Net Financial Obligations (NFO) refer to the total amount of financial liabilities a company owes, minus its liquid financial assets.