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Sirona Dental Systems Inc (NAS:SIRO)
Net Current Asset Value
\$6.55 (As of Dec. 2015)

In calculating the Net Current Asset Value (NCAV), Benjamin Graham means a company's current assets (such as cash, marketable securities, and inventories) minus its total liabilities (including preferred stock and long-term debt).

Sirona Dental Systems Inc's net current asset value per share for the quarter that ended in Dec. 2015 was \$6.55.

Definition

Sirona Dental Systems Inc's Net Current Asset Value (NCAV) per share for the fiscal year that ended in Sep. 2015 is calculated as

 Net Current Asset Value Per Share (A: Sep. 2015 ) = (Total Current Assets - Total Liabilities - Preferred Stock) / Shares Outstanding = (876.6 - 564.1 - 0) / 55.90 = 5.59

Sirona Dental Systems Inc's Net Current Asset Value (NCAV) per share for the quarter that ended in Dec. 2015 is calculated as

 Net Current Asset Value Per Share (Q: Dec. 2015 ) = (Total Current Assets - Total Liabilities - Preferred Stock) / Shares Outstanding = (875.8 - 509.2 - 0) / 55.94 = 6.55

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Explanation

Benjamin Graham first discussed net current asset value (NCAV) in the 1934 edition of "Security Analysis", which he coauthored with David Dodd. In the book, (net) current asset value is defined as:" current assets alone, minus all liabilities and claims ahead of the issue."

The common definition of NCAV is: NCAV = current assets – [total liabilities + preferred stock]

Net current assets exclude not only the intangible assets but also the fixed and miscellaneous assets. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. In "Security Analysis", preferred stock is dubbed "an imperfect creditorship position" that is best placed on the balance sheet alongside funded debt.

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

Historical Data

* All numbers are in millions except for per share data and ratio. All numbers are in their local exchange's currency.

Sirona Dental Systems Inc Annual Data

 Mar06 Sep07 Sep08 Sep09 Sep10 Sep11 Sep12 Sep13 Sep14 Sep15 NCAV 4.13 -13.77 -11.74 -9.28 -5.96 -3.81 -1.74 -0.36 2.44 5.59

Sirona Dental Systems Inc Quarterly Data

 Sep13 Dec13 Mar14 Jun14 Sep14 Dec14 Mar15 Jun15 Sep15 Dec15 NCAV -0.36 0.02 0.69 1.66 2.44 3.39 3.98 4.57 5.59 6.55
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