TSX:SOT.DB - Post by User
Post by
hawk35on Oct 28, 2022 1:01pm
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Post# 35056251
Net Asset Value
Net Asset Value
I'm not sure where National Bank and Royal Bank got their NAV numbers.
NAV calculation is very simple. Here it is:
Total Assets - Total Liabilities divided by Shares Outstanding.
Based on the Q2 balance sheet:
1,989219,000 - 1,275,423,000 = 713,796,000 divided by 80,174,000 = $8.90.
NAV is not a good indicator of value. The reason is that all properties on the balance sheet are valued at what they originally paid for them minus depreciation. NAV does not reflect what the properties are worth today. If you factored in what the properties are worth today the NAV value would be higher. How much higher depends on how long ago the properties were purchased.