Gross Asset Value (GAV) is the total market value of everything a fund or company owns before subtracting any debts or costs.
What is Gross Asset Value (GAV)?
Gross Asset Value (GAV) represents the total market value of all assets held by an investment fund, holding company, or portfolio. Importantly, this is before subtracting any debts or costs. It shows how much the underlying investments are worth in total. Therefore, GAV gives investors a clear picture of what the company owns.
For example, Exor N.V., the investment company behind Ferrari, Stellantis, and Philips, regularly reports its GAV to show the total value of its holdings. When Exor’s portfolio rises in market value — for instance, if Ferrari’s share price increases — its GAV goes up as well. Conversely, a decline in one of its major investments lowers the overall GAV.
Why GAV matters
GAV helps investors understand the size and composition of a portfolio. It is widely used by investment firms, real estate funds, and holding companies that own multiple businesses or properties. Tracking changes in GAV over time shows whether the overall value of the portfolio is growing or declining — regardless of how those assets are financed.
How is Gross Asset Value used?
GAV is often the starting point for calculating Net Asset Value (NAV), which subtracts debts and liabilities to show what remains for shareholders. Analysts use GAV to evaluate the total worth of a company’s assets before financing effects come into play. For example, an increase in GAV might reflect higher market valuations, new investments, or acquisitions.
Example
Imagine a fund that owns €100 million in company shares, €30 million in real estate, and €20 million in bonds. Its Gross Asset Value (GAV) is calculated as:
GAV = 100 + 30 + 20 = 150 million
If the fund has €20 million in debt, the Net Asset Value (NAV) is calculated as:
NAV = 150 − 20 = 130 million
This shows how GAV gives the total value of all assets, while NAV shows what remains after liabilities are subtracted.
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