Should be or should we not deduct long term debt along with current liabilities from total current assets to arrive at current asset value per share?
Net Current Asset Value Per Share - NCAVPS:
A value created by professor Benjamin Graham in the mid-twentieth century to determine if a company was trading at a fair market price. NCAVPS is calculated by taking a company's current assets and subtracting the total liabilities, and then dividing the result by the total number of shares outstanding. (Investopedia)
(Current Assets- Total Liabilities)/Number of shares outstanding
XYZ company has $16 million in current assets , $6 million in current liabilities, and 2 million shares outstanding. So according to the formula we have:
NCAVPS = ($16,000,000 - $6,000,000) / 2,000,000 = $5
NCAVPS: (Current Assets- Total Liabilities) / Shares Outstanding