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A 1993 study found that the NCAV strategy in
Japanese stocks produced a return of 19.7% compared to 16.6% for the relevant benchmark from 1975 to 1988. A 2008 study found that the NCAV strategy on the
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A 1986 study found that a Ben Graham-style NCAV investing strategy outperformed the benchmark from 1971 to 1983. The NCAV strategy produced a return of 33.7% compared to 12.1% for the benchmark.
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A 2014 study found that the NCAV strategy produced an annualized geometric return of 24.7% from 2003 to 2010; the excess returns were unexplainable by either the
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Bildersee, John; Cheh, John; Ajay, Zutshi (September 1993). "The
Performance of Japanese Common Stocks in Relation to Their Net Current Asset Values".
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strategy of buying a well-diversified portfolio of stocks that have a net current asset value greater than their
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produced a mean annualized return of 31.1% compared to 20.5% for the relevant benchmark between 1980 and 2005.
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Oppenheimer, H.R. (1986). "Ben Graham's Net
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Market
Capitalization (MC) = Number of Shares Outstanding × Current Price per share
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323:"Ben Graham's NCAV (Net Current Asset Value) Technique in the 21st Century"
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389:"Testing Benjamin Graham's Net Current Asset Value Strategy in London"
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provides insufficient context for those unfamiliar with the subject
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A company's net current asset value (NCAV) can be calculated as:
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Net
Current Asset Value (NCAV) = Total Current Assets - Total
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If NCAV > MC then the stock is considered undervalued.
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The Net
Current Asset Value Approach To Stock Investing
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321:Dudzinski, Jonathan; Kunkel, Robert (Spring 2014).
117:And a company's market cap is calculated as:
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246:"Net Current Asset Value Per Share (NCAVPS)"
78:(NCAV) is a financial metric popularized by
62:Learn how and when to remove this message
201:Xiao, Ying; Arnold, Glen (2007-03-06).
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387:Xiao, Y.; Arnold, G.C. (Winter 2008).
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180:(6 ed.). McGraw-Hill Education.
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273:. Wendl Financial, Inc.
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52:October 2018
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113:Liabilities
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