What is | net asset value per share | meaning

ArticleDirectory

• Significance of net asset value per share

M branch I G Branch J branch ng Z branch ch branch n ZH í

What is the net asset value per share?

The company's net assets represent the company's own assets and the rights and interests of shareholders in the company. Therefore,

Also known as shareholder equity. In accounting,

It is equivalent to the balance after the total assets in the balance sheet minus all debts. Company's net assets divided by the total number of issued shares,

Net assets per share.

Significance of net asset value per share

The net asset value per share reflects the value of the company's net assets, which is an important basis to support the stock market price.

The larger the net asset value per share,

It indicates that the more wealth the company shares represent, the more ability to generate profits and resist external factors.

After-tax profits per share, net asset value per share, and return on net assets are the main indicators to measure the company's investment value.

After-tax profit is also called earnings per share. The company's after-tax profit can be calculated by dividing the total number of shares of the company. For example

After-tax profits of a listed company were 0.2 billion yuan,

The total number of shares of the company is 1 billion, so the company's after-tax profit per share is 0.2 yuan (0.2 billion yuan/1 billion shares 〕.

After-tax profits per share highlight the amount of profit allocated to each stock, which is the basis for price-earnings ratio pricing in the stock market.

If a company's total profit after tax is large,

However, earnings per share are small, indicating that its business performance is not satisfactory. The price per share is usually not high. On the contrary, the earnings per share is high,

It indicates that the company's operating performance is good,

High stock prices are often supported.