Benjamin Graham's net current asset value per share: current assets minus total liabilities, divided by shares outstanding. A positive value above the stock price is a classic deep-value signal, meaning you're buying the company for less than its liquidation value.
Formula
Description
Benjamin Graham's net current asset value per share. Measures the per-share liquidation value using only current assets minus all liabilities. Stocks trading below their net-net value are the deepest of deep-value plays - you're essentially buying the business for less than its cash and receivables after paying off all debts.
Interpretation
A Graham net-net above the current stock price is a classic buy signal from Security Analysis. Negative values mean liabilities exceed current assets, which is common for capital-intensive businesses. Most useful for small-caps and special situations.
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Research and development spending as a percentage of revenue. The ideal range depends on industry: tech companies often spend 15-25%. Too little may mean underinvestment in the future; too much may burden profitability.
Total operating expenses divided by revenue. Below 0.8 indicates a healthy 20%+ operating margin. Above 1.0 means the company isn't covering operating costs with revenue. A declining ratio signals improving efficiency.
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