Finance Lab
Net asset valuation
Value the business from what it owns and owes, once the book figures are brought to today's worth.
Adjusted net assets = (book assets + revaluation adjustments − unrecorded liabilities) − book liabilities. Surplus assets not needed to trade are separated out.
Step 1 · Enter your figures
Every box starts with an example figure. Replace each one with your own — the result updates as you type. Nothing you type is sent anywhere or stored.
Everything the business owns, as shown in the accounts.
Everything the business owes, as shown in the accounts.
How much more (or less, as a negative) the assets are worth than the accounts show — property, plant, stock.
Debtors unlikely to be collected, obsolete stock, intangibles with no resale value.
Employee entitlements, warranty or make-good obligations, disputes.
Assets the business could sell without affecting trading, such as an unused property.
Step 2 · Read the result
Net assets in the accounts
$700,000
- Adjusted net asset value
- $750,000
- Of which is trading net assets
- $750,000The asset backing that actually supports the trading business.
- Adjustment to the book position
- $50,000The accounts understate the asset backing on your figures.
- Adjusted net asset value$750,000
- Of which is trading net assets$750,000
- Adjustment to the book position$50,000
What this answer rests on (9)
- Total assets at book value$1,200,000
You entered this
Everything the business owns, as shown in the accounts.
- Total liabilities at book value$500,000
You entered this
Everything the business owes, as shown in the accounts.
- Revaluation of assets$150,000
You entered this
How much more (or less, as a negative) the assets are worth than the accounts show — property, plant, stock.
- Assets that will not be realised$40,000
You entered this
Debtors unlikely to be collected, obsolete stock, intangibles with no resale value.
- Liabilities not in the accounts$60,000
You entered this
Employee entitlements, warranty or make-good obligations, disputes.
- Surplus assets not needed to trade$0.00
You entered this
Assets the business could sell without affecting trading, such as an unused property.
- Values are on a going-concern basis. A forced sale would realise less.
The calculator applied this
- Every adjustment is the one you entered; the platform revalues nothing itself.
The calculator applied this
- This method values asset backing only. It ignores goodwill and earning capacity, so it usually sits below an earnings-based value for a profitable business.
The calculator applied this
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Save to my workspaceRead this before you rely on the result
- Surplus assets not needed to trade is at the lowest figure this calculator accepts. The result reflects that limit, not a figure below it.
What this means for you
What the business is worth on its assets alone, once the accounts are brought to what things are really worth today.
How to read it
- Compare the adjusted figure with the net assets in your accounts. The gap is what the accounts are not telling you.
- Trading net assets is the backing that supports the business itself; surplus assets are separate value you could sell.
- For a profitable business this number is usually a floor, not a price — earnings-based methods sit above it.
Watch out for
- Leaving debtors in at face value when part of the ledger will never be collected.
- Ignoring employee entitlements and make-good obligations that never appear in the balance sheet.
- Treating a going-concern value as what a forced sale would raise. It would not.
Assumptions behind this result
- Values are on a going-concern basis. A forced sale would realise less.
- Every adjustment is the one you entered; the platform revalues nothing itself.
- This method values asset backing only. It ignores goodwill and earning capacity, so it usually sits below an earnings-based value for a profitable business.
General information only. This calculator does not take your circumstances into account and is not financial, tax, legal or investment advice. Confirm every rate, threshold and figure with your own adviser before acting.
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Take this further
Members run this calculator on their own recorded figures, save the workings to their workspace, export them to Word or Excel, and read the lessons that teach the thinking behind the result.