Net asset value (NAV) market price calculation quantifies the market value of a portfolio’s underlying assets. For instance, a mutual fund’s NAV market price is the total value of its stocks, bonds, and other holdings divided by the number of its outstanding shares.
Determining NAV market price enables investors to assess the fairness of a fund’s share price, track its performance over time, and make informed investment decisions. It is rooted in the concept of liquidating a portfolio’s assets and distributing the proceeds to shareholders.