NTAV strips out intangibles to show hard-asset backing after liabilities.
Published: 2025-12-20
Definition
Net Tangible Asset Value (NTAV) = Total Assets − Intangibles − Total Liabilities.
Why it matters
By removing intangibles, NTAV highlights the hard-asset cushion available to equity holders if the business were wound down.
Where to apply it
Use NTAV alongside NCAV for asset-backed valuation; prefer companies whose market cap is at a steep discount to NTAV, and verify the quality and liquidity of the tangible assets.