💼 Net Asset Value (NAV) / Net Worth
⬅️ Back to Performance Metrics Overview
💡 What is NAV?
Net Asset Value (NAV) is the total market valuation of your portfolio at a point in time \(t\). It answers: "How much is the portfolio worth right now?"
🧮 Formula
\[
\boxed{\mathrm{NAV}(t) = \mathrm{MV}(t) + \mathrm{Cash}(t) + \mathrm{InTransit}(t)}
\]
Where \(\mathrm{MV}(t) = \sum_{(a,b) \in S} q(a,b,t) \cdot p(a,t) \cdot \mathrm{fx}(\mathrm{ccy}_p, C^*, t)\)
🔗 See Portfolio Engine — §5 Aggregation for full derivation.
🔗 Valuation Price Chain
The price \(p(a,t)\) follows a strict priority:
- Market price — PriceHistory backward-fill (latest \(\leq t\))
- Last buy price — most recent BUY unit price from \(V(u)\) (all visible brokers)
- Missing — position excluded from NAV
WAC is never used for valuation. See Portfolio Engine — §2.
📝 Example
| Component | Amount |
|---|---|
| Market Value of Assets | €32,759 |
| Cash Balance | €631 |
| In-Transit | €0 |
\[
\mathrm{NAV} = 32\,759 + 631 + 0 = 33\,390 \text{ EUR}
\]
⚖️ Key Distinctions
- NAV vs Book Value: NAV = market value; Book = acquisition cost. Difference = unrealized gains.
- NAV vs Period PnL: NAV = snapshot; Period PnL = flow-adjusted change over time.
⚠️ Data Quality
| Valuation Source | Confidence |
|---|---|
MARKET_PRICE |
Full — PriceHistory available |
LAST_BUY_PRICE |
Partial — using transaction price |
MISSING |
None — excluded from NAV |