I’m trying to learn more about interpreting company financials.
I read recently that the NAVPS of one of my stocks (investment trust) is likely to be particularly adversely impacted by the increase in Corporation Tax introduced by the recent budget. That prompted me to investigate further, but I’m struggling to find anything online that explains whether or not an NAVPS lower than the stock’s share price is a good thing or a bad thing (I assume its an appropriate comparison?).
Can anyone shed light on this please?
Some numbers below:
Market capitalisation £2,4 million
Share price 134.2 pence
GAV £3,329.9 million
NAV £2,229.9 million
NAV per share 122.2 pence
Total return (NAV) 6.5 per cent
Premium to NAV 9.8 per cent