What is the meaning of "net asset value"?

[Good-Person]

Net asset value refers to a condition where the total assets of a company is calculated after subtracting the liabilities. In many cases, it may also involve other factors as well such as total shares issues by the company to its investors and a few other things as well. So, what is net asset value? Why is it relevant?

 

[Kane]

Net asset value, or net worth is your actual asset value that you can get by subtracting your liabilities from your assets. First of all monetary value of your assets will be counted (house, land, gold, stocks, investments, cash reserve, cards, anything you have), then the net liabilities will be added (loan., debt, outstanding bills, etc.). When you minus liabilities from assets, you will get your net worth.