Net Cash = Cash and cash equivalents
- Total Liabilities
Ben Graham invested in situations where the companyï¿½s stock price was lower than its net-cash. He assigned some value to the companyï¿½s other current asset. The value is called Net Current Asset Value (NCAV). 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 Grahamï¿½s strategy produced similar results.
You can find companies that are traded below their Net Current Asset Value (NCAV) with our Net-Net screener
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Cash and cash equivalents
, Total Liabilities
, Net Current Asset Value