You should exclude all permanent – mostly immovable – assets and select only current assets. Then, you should subtract total liability of the company from this current assets. The result is to be divided by number of stocks to arrive at net current asset per share. Then, you should select the stock for investment only if it is available at two third – or even lesser - of this net current asset. The highlight of this approach is a twin advantage. One merit is getting current assets at 33.33 per cent discount. On top of this all permanent assets are acquired for free.
