The institutional notebook
The denominator matters
An illustrative mNAV calculation, not a company valuation.
Imagine a fictional company with 1,000 LTC valued at an assumed $50 each, $10,000 in cash and $5,000 of liabilities. Under this deliberately simple equity-NAV definition, net assets would be $55,000. If its hypothetical market capitalization were $66,000, the ratio would be 1.20 times that NAV.
Nothing on this page is a live market input or a valuation of Lite Strategy or another issuer. The exercise shows why the definition matters. Enterprise-value approaches, restricted assets, derivative exposures, preferred claims, dilution and valuation timestamps can change the result. Two dashboards can publish different ratios while using different denominators.
An analyst should state the formula before the number and reconcile the inputs to the same date. A premium is not automatically a signal to buy or sell. It may reflect expectations, access, risk, liquidity or a mistake in the data.
The productive question is not which ratio is most flattering. It is whether another reader can reproduce the calculation and understand what was left out.
- Fictional net assets / 1,000 x $50 + $10,000 - $5,000 = $55,000
- Fictional ratio / $66,000 divided by $55,000 = 1.20x
- All inputs are teaching assumptions; no trade is proposed.