The amount of an entity’s net assets (net asset value) that each individual share reflects and would be worth. In calculation, net assets per share is net assets (total assets on the balance sheet minus total liabilities) divided by the number of shares outstanding (shares in issue):

Net assets per share = net assets/ shares outstanding

Net assets per share is a key indicator whereby the intrinsic value of an entity can be evaluated. It reflects how much each share outstanding is worth in an entity’s books at the end of the accounting period. For instance, with everything else held constant, the higher the net assets per share of a entity’s stock, the higher the growth potential of the entity (and the higher the investment value of its stock), and the lower the investment risk associated with its stock.

Changes in net assets per share may impact the market value of an entity’s shares. For example, an increase in net assets per share (through a share buyback) may positively impact the market value of shares outstanding.