Asset Based Valuation Calculator
Asset Based Valuation determines the value of a business based on the adjusted value of its assets less the adjusted value of its liabilities. More info →
Input
Enter asset and liability values to calculate
the net asset value.
How This Calculator Works
This calculator values a business by what its assets are really worth, minus what it really owes. Book values on the balance sheet are adjusted: each asset by the percentage you expect to realise if it were sold, and each liability by the percentage you expect to have to pay to settle it.
The Formulas
Adjusted Asset = Book Value × Realisation % · Adjusted Liability = Book Value × Settlement %
Net Asset Value = Total Adjusted Assets − Total Adjusted Liabilities
Net Asset Value = Total Adjusted Assets − Total Adjusted Liabilities
Realisation % can be 0 to 1,000 (above 100 if an asset is worth more than its book value) · Settlement % can be 0 to 100
What Each Input Does
- Asset Item / Book Value / Realisation %
- Each asset, its value in the accounts, and the share of that value you expect to get. For example, old stock might realise only 60%.
- Liability Item / Book Value / Settlement %
- Each liability, its value in the accounts, and the share you expect to pay. Usually 100% unless a discount can be negotiated.
Step by Step
- Each asset's book value is multiplied by its realisation %.
- Each liability's book value is multiplied by its settlement %.
- Adjusted assets and adjusted liabilities are added up separately.
- Net asset value is total adjusted assets minus total adjusted liabilities.
Reading the Result
Positive – the value left for owners after paying all debts.
Negative – liabilities exceed what the assets would fetch.
Quick Example
Assets: property 1,000,000 at 80% = 800,000, receivables 200,000 at 90% = 180,000,
inventory 150,000 at 60% = 90,000, total 1,070,000.
Liabilities: loans 500,000 at 100% and payables 100,000 at 100%, total 600,000.
Net asset value = 1,070,000 − 600,000 = 470,000.
Artoval Financial Labs