The net current asset value (NCAV) is a financial metric popularized by Benjamin Graham in his 1934 book Security Analysis.
Graham suggested a value investing strategy of buying a well-diversified portfolio of stocks that have a net current asset value greater than their market cap.
This strategy is sometimes referred to as "cigar-butt" investing, because it tends to focus on struggling companies that are trading below their liquidation value.
[6] A 1993 study found that the NCAV strategy in Japanese stocks produced a return of 19.7% compared to 16.6% for the relevant benchmark from 1975 to 1988.
[7] A 2008 study found that the NCAV strategy on the London Stock Exchange produced a mean annualized return of 31.1% compared to 20.5% for the relevant benchmark between 1980 and 2005.