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In calculating the Net-Net Working Capital (NNWC), 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. In addition, Graham believed that preferred stock belongs on the liability side of the balance sheet, not as part of capital and surplus. This is a conservative way of estimating the company's value.
FFA's Price-to-Net-Net-Working-Capital is ranked worse than 94.72% of 492
companies
in the Asset Management industry
Industry Median: 6.29
vs FFA: 144.38
First Trust Enhanced Equityome Fund (NYSE:FFA) Net-Net Working Capital 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.
First Trust Enhanced Equityome Fund Net-Net Working Capital Related Terms
First Trust Enhanced Equityome Fund Net-Net Working Capital Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
First Trust Enhanced Equityome Fund Net-Net Working Capital Chart
FFA vs NBB, ETB, KIO: Net-Net Working Capital Comparison
For the Asset Management subindustry, First Trust Enhanced Equityome Fund's Price-to-Net-Net-Working-Capital, along with its competitors' market caps and Price-to-Net-Net-Working-Capital data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
First Trust Enhanced Equityome Fund Price-to-Net-Net-Working-Capital vs Asset Management Industry
For the Asset Management industry and Financial Services sector, First Trust Enhanced Equityome Fund's Price-to-Net-Net-Working-Capital distribution charts can be found below:
* The bar in red indicates where First Trust Enhanced Equityome Fund's Price-to-Net-Net-Working-Capital falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
In calculating the Net-Net Working Capital (NNWC), 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.
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.
This is a conservative way of estimating the company's value.
What does a Net-Net Working Capital of $0.16 mean?
First Trust Enhanced Equityome Fund (FFA) has a Net-Net Working Capital of $0.16 as of Dec. 2025. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on First Trust Enhanced Equityome Fund According to the industry distribution chart, First Trust Enhanced Equityome Fund ranks #466 out of 492 companies in the Asset Management industry, placing it in the top 94.7%.
Is First Trust Enhanced Equityome Fund's Net-Net Working Capital too high?
First Trust Enhanced Equityome Fund's current Net-Net Working Capital is $0.16. The Asset Management industry median Net-Net Working Capital is 6.29. First Trust Enhanced Equityome Fund's value of $0.16 is 97.5% below this industry median. Based on the distribution chart, First Trust Enhanced Equityome Fund ranks #466 out of 492 companies in the Asset Management industry, which is in the bottom quartile relative to peers. Overall, First Trust Enhanced Equityome Fund has a GF Score™ of 61/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does First Trust Enhanced Equityome Fund's Net-Net Working Capital compare to NBB and ETB?
According to the Asset Management industry distribution chart, First Trust Enhanced Equityome Fund ranks #466 out of 492 companies for Net-Net Working Capital. This places First Trust Enhanced Equityome Fund in the lower half of its industry. The industry median Net-Net Working Capital is 6.29. First Trust Enhanced Equityome Fund's value of $0.16 is 97.5% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Net-Net Working Capital for an Asset Management company?
The median Net-Net Working Capital among Asset Management companies is 6.29, based on 492 companies in the industry. Companies in the top quartile (top 25%) have a Net-Net Working Capital significantly above this median, while those in the bottom quartile fall well below. However, Net-Net Working Capital should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. First Trust Enhanced Equityome Fund's current Net-Net Working Capital of $0.16 is 97.5% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Net-Net Working Capital mean?
A high Net-Net Working Capital can signal that a stock is expensive relative to its fundamentals. Ben Graham defined net-net working capital as the per-share sum of cash, 75% of receivables and 50% of inventory less total liabilities. View historical data on First Trust Enhanced Equityome Fund For the Asset Management industry, the median Net-Net Working Capital is 6.29 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. First Trust Enhanced Equityome Fund's current Net-Net Working Capital is $0.16. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is First Trust Enhanced Equityome Fund stock overvalued right now?
Based on GuruFocus' analysis, First Trust Enhanced Equityome Fund (FFA) is currently considered Fairly Valued. The stock's GF Value™ is $23.66, compared to a current price of $23.10 — trading 2.4% below its estimated fair value. The current Net-Net Working Capital is $0.16 and 97.5% below the Asset Management industry median of 6.29. First Trust Enhanced Equityome Fund's overall GF Score™ is 61/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net-Net Working Capital calculated?
Net-Net Working Capital is calculated from a company's financial statements. For First Trust Enhanced Equityome Fund (FFA), the current Net-Net Working Capital is $0.16 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is First Trust Enhanced Equityome Fund (FFA) Overvalued in 2026?
Based on GuruFocus' analysis, First Trust Enhanced Equityome Fund stock appears to be undervalued.
The current stock price of $23.10 is trading 2.4% below its estimated GF Value™ of $23.66.
GuruFocus considers First Trust Enhanced Equityome Fund to be Fairly Valued.
Key valuation signals for FFA:
Net-Net Working Capital: $0.16
GF Value™: $23.66 vs. price of $23.10 (2.4% below fair value)
Industry Position: 97.5% below the Asset Management median (#466 of 492)
No single metric tells the full story. See the FFA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
First Trust Enhanced Equity Income Fund is a diversified, closed-end management investment company. Its investment objective is to provide high level of current income and gains and, to a lesser extent, capital appreciation. The Fund pursues its investment objective by investing in a diversified portfolio of equity securities.
61GF Score
Get the complete analysis for FFA
Net-Net Working Capital is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
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