Shares & Derivatives
Analysing Stocks With Conservative Net Asset Value (CNAV) Strategy
By Dr Wealth  •  May 14, 2014
After talking about the genesis of the CNAV strategy previously, I am going to disclose the method of analysis and calculation process in this article.

Calculating the CNAV

Before we dive deep into the calculation, you would need to understand the structure of the Annual Report and the 3 financial statements. It will be easier to use Hongkong Land as an example to go through the calculation. The first page of the annual report we usually go to is the Balance Sheet. I am using the Dec 2013 report which you can download from SGX website. These are items we would count as Assets: and let us be conservative and only consider properties and cash, and exclude other assets which are less valuable and stable:
  • Leasehold land: $7.4m
  • Investment properties: $23,583m (main bulk of their assets)
  • Bank Balances: $1,406.3m (cash)
  • Ignore Tangible fixed assets. Also known as Property, ...
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By Dr Wealth
Dr Wealth provides trusted financial education to individuals. We teach researched and actionable investment methods so that our graduates are successful in their investment journey and achieve market-beating returns.
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