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Gross Asset Value

Gross Asset Value (GAV) represents the total market value of all the assets owned by a company or investment fund, including both current and non-current assets, before deducting any liabilities. GAV is a key metric used in real estate, private equity, and investment management to assess the overall value of a portfolio. It provides a snapshot of the total asset base, helping investors evaluate the scale and potential of an investment.

Example

A real estate investment trust (REIT) calculates its GAV by summing the market values of its properties, totaling $500 million, providing a measure of its asset base before accounting for debt.

Key points

• Represents the total market value of all assets owned before deducting liabilities.

• Commonly used in real estate, private equity, and investment management.

• Helps assess the scale and potential of an investment portfolio.

Quick Answers to Curious Questions

GAV provides a comprehensive view of the total asset base, helping investors understand the scale and potential returns of a portfolio.

GAV includes the total value of assets, while NAV deducts liabilities, providing a clearer picture of the actual equity value available to investors.

Factors include changes in market prices, asset acquisitions or disposals, and fluctuations in property or asset valuations.
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