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Primus Guaranty Ltd  (OTCPK:PRSG) Net Cash per Share: \$-18.49 (As of Dec. 2011)

Net cash per share is calculated as Cash And Cash Equivalents minus Total Liabilities and then divided by Shares Outstanding (Diluted Average). Primus Guaranty Ltd's net cash per share for the quarter that ended in Dec. 2011 was \$-18.49.

Historical Data

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

Primus Guaranty Ltd Annual Data

 Dec02 Dec03 Dec04 Dec05 Dec06 Dec07 Dec08 Dec09 Dec10 Dec11 Net Cash per Share 0.00 0.00 0.00 0.00 0.00

Primus Guaranty Ltd Quarterly Data

 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09 Sep09 Dec09 Mar10 Jun10 Sep10 Dec10 Mar11 Jun11 Sep11 Dec11 Net Cash per Share 0.00 0.00 0.00 0.00 0.00

Calculation

In the calculation of a company's net cash, assets other than cash and short term investments are considered to be worth nothing. But the company has to pay its debt and other liabilities in full. This is an extremely conservative way of valuation. Most companies have negative net cash. But sometimes a company's price may be lower than its net-cash.

Primus Guaranty Ltd's Net Cash Per Share for the fiscal year that ended in Dec. 2011 is calculated as

 Net Cash Per Share (A: Dec. 2011 ) = (Cash And Cash Equivalents - Total Liabilities) / Shares Outstanding (Diluted Average) = (87.247 - 731.462) / 34.84 = -18.49

Primus Guaranty Ltd's Net Cash Per Share for the quarter that ended in Dec. 2011 is calculated as

 Net Cash Per Share (Q: Dec. 2011 ) = (Cash And Cash Equivalents - Total Liabilities) / Shares Outstanding (Diluted Average) = (87.247 - 731.462) / 34.84 = -18.49

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

Explanation

Ben Graham invested in situations where the company's stock price was lower than its net-cash. He assigned some value to the company's 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 Graham's strategy produced similar results.

You can find companies that are traded below their Net Current Asset Value (NCAV) with our Net-Net screener. GuruFocus also publishes a monthly Net-Net newsletter.

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