EveryCalc

Finance category

Mortgage, loan, investing, tax, and money calculators.

Browse finance

NAV To Public Market Discount Calculator

REITs trade at discount to NAV. This calculator measures.

$
$

Discount %

30.00%

Total value gap

$2,250,000,000

Market cap (M)

$5,250,000,000

How the math works

Discount % = (NAV − price) / NAV. Gap = (NAV − price) × shares.

$35 price vs $50 NAV: 30% discount. On 150M shares: $2.25B value gap. $5.25B market cap. Deep discount candidate for activist or go-private.

How to Use

  1. Enter REIT share price.
  2. Enter NAV per share.
  3. Enter shares outstanding.
  4. Read discount/premium and total value gap.

Frequently Asked Questions

Why discount?

Historical REIT traits: public discount 5-20% to NAV most times. Reflects liquidity differential, management fee drag, taxation, growth outlook. Tight spreads in up markets; wide in down markets (2022-24: 30-40% discounts common).

Premium periods?

2020-21: most public REITs traded at 10-20% premium. When REITs trade above NAV: easy issuance opportunity. Value-creation through equity raises. 2022+: opposite — REITs sellers, M&A targets.

Strategy?

Deep NAV discount: buy signal. NAV premium: sell or issue equity signal. Activist investors press Boards when NAV/price spread wide. Go-private transactions on heavy discounts. Cycle plays dominate REIT strategy.

Related Calculators

More Finance Calculators

Browse all finance

Keep exploring

Next steps in Finance

View finance hub →