14-05-2011, 09:28 PM
What is Net Net Working Capital?
Net Net Working Capital = Cash + Short Term Marketable Investments + Accounts Receivable * 75% + Inventory * 50% – Total Liabilities
“Net Net Working Capital†(NNWC) is one of the first stock valuation screening methods to be defined in the value investing world. Benjamin Graham also referred to this as Net-Current-Asset Value (NCAV).
The Net Net Working Capital formula may help identify undervalued stocks. Benjamin Graham actually used the term “Net Working Capital†but current value investors and Graham followers use the terms “net nets†or “Net Net Working Capital†interchangeably.
One value investing strategy of Graham was...http://deepvalueinvestor.com/net-net-working-capital/
Net Net Working Capital = Cash + Short Term Marketable Investments + Accounts Receivable * 75% + Inventory * 50% – Total Liabilities
“Net Net Working Capital†(NNWC) is one of the first stock valuation screening methods to be defined in the value investing world. Benjamin Graham also referred to this as Net-Current-Asset Value (NCAV).
The Net Net Working Capital formula may help identify undervalued stocks. Benjamin Graham actually used the term “Net Working Capital†but current value investors and Graham followers use the terms “net nets†or “Net Net Working Capital†interchangeably.
One value investing strategy of Graham was...http://deepvalueinvestor.com/net-net-working-capital/