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Investors Real Estate Trust (NYSE:IRET)
Net Current Asset Value
$0.00 (As of Jan. 2014)

In calculating the Net Current Asset Value (NCAV), Benjamin Graham assumed that a company’s accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. This is a conservative way of estimating the company’s value.

Investors Real Estate Trust's net current asset value per share for the quarter that ended in Jan. 2014 was $0.00.


Definition

Investors Real Estate Trust's Net Current Asset Value (NCAV) per share for the fiscal year that ended in Apr. 2013 is calculated as

Net Current Asset Value(A: Apr. 2013 )
=(CashAndCashEquivalents-Total Liabilities+0.75 * Acct. Receivable+0.5 * Inventory)/Shares Outstanding
=(94.772-1276.767+0.75 * 30.888+0.5 * 0)/100.87
=-11.49

Investors Real Estate Trust's Net Current Asset Value (NCAV) per share for the quarter that ended in Jan. 2014 is calculated as

Net Current Asset Value(Q: Jan. 2014 )
=(CashAndCashEquivalents-Total Liabilities+0.75 * Acct. Receivable+0.5 * Inventory)/Shares Outstanding
=(0-0+0.75 * 0+0.5 * 0)/106.94
=0.00

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

In calculating the Net Current Asset Value (NCAV), Benjamin Graham assumed that a company’s accounts receivable is only worth 75% its value, its inventory is only worth 50% of its value, but its liabilities have to be paid in full. This is a conservative way of estimating the company’s value.


Explanation

One research study, covering the years 1970 through 1983 showed that portfolios picked at the beginning of each year, and held for one year, returned 29.4 percent, on average, over the 13-year period, compared to 11.5 percent for the S&P 500 Index. Other studies of Graham’s strategy produced similar results.

Benjamin Graham looked for companies whose market values were less than two-thirds of their net-net value. They are collected under our Net-Net screener. GuruFocus also publishes a monthly Net-Net newsletter.


Related Terms

Cash and Cash Equivalents, Total Liabilities, Accounts Receivable, Inventory, Net Cash


Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their own currency.

Investors Real Estate Trust Annual Data

Apr04Apr05Apr06Apr07Apr08Apr09Apr10Apr11Apr12Apr13
NCAV -18.48-18.50-19.09-22.48-21.00-20.30-15.56-14.20-13.61-11.49

Investors Real Estate Trust Quarterly Data

Oct11Jan12Apr12Jul12Oct12Jan13Apr13Jul13Oct13Jan14
NCAV -14.34-14.08-13.61-13.80-12.44-12.46-11.49-11.14-11.220.00
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