Price to NCAV compares the current price to the Net Current Asset Value which equals the companies current assets minus its total liabilities.

This gives an additional margin of safety versus Price to Book Value - on this valuation measure, one is essentially paying nothing for all the fixed assets (buildings, machinery, etc), or any goodwill items that may exist.

As with all of our Balance Sheet Ratios, this will be based on the latest financial statements (interim or annual) but it's always important to be aware of any post-balance sheet events that may have reduced the cash balance - an acquisition or a buyback, for example.

The market may be pricing in something that has not been captured by the snapshot given in the latest financial statements.