Net-Net Stock Screener Criteria Explained: P/NCAV and Filters

Should the P/NCAV limit be 1.0 or two-thirds?

Use 1.0 as the platform admission ceiling and at or below two-thirds of NCAV as a stricter research screen. A ratio of 1.0 means market capitalization equals NCAV; it passes the platform ceiling but offers no discount to that accounting value.

Graham's two-thirds criterion asks for a larger margin between price and NCAV. However, 0.67 is only a rounded approximation: it is slightly above exact 2/3. Verify the exact ratio from filings rather than treating a rounded display value as proof that a stock meets the two-thirds test. Even a large discount cannot protect against unusable assets, deteriorating operations or claims you have overlooked.

How do the criteria work in a numerical example?

In this hypothetical example, NCAV is $75 million. Dividing each possible market capitalization by that same NCAV shows which valuation thresholds it meets. These are illustrative numbers, not a company or stock recommendation.

NCAV = Current Assets − Total Liabilities − Minority Interest − Preferred Equity

P/NCAV = Market Cap ÷ NCAV

Current assets of $120 million minus total liabilities of $40 million, minority interest of $3 million and preferred equity of $2 million leave $75 million of NCAV: 120 − 40 − 3 − 2 = 75, all in USD millions.

The exact two-thirds cutoff is a market cap of $50 million: 50 ÷ 75 = 2/3. The $75 million case passes only the platform equality boundary. Passing either valuation test does not replace the other admission rules or manual diligence.

Which filters can I actually use in EveryNetNet?

Pro provides country, industry, inclusive P/NCAV minimum and maximum, and inclusive P/TBV minimum and maximum filters. Free does not expose these controls. Inclusive means a value exactly equal to a bound passes that bound; leaving a bound blank adds no extra restriction.

On desktop, look for By Country, By Industry and More Filters. On mobile, these are labeled Country, Industry and Filters. Country and industry selections replace each other in the current UI; they are not cumulative filters.

For an approximate two-thirds shortlist, open More Filters → P/NCAV Range → set Maximum to 0.67 → Apply Filters. Check the exact 2/3 threshold yourself afterward.

P/TBV compares market value with tangible book value. It is a separate measure, not an NCAV substitute. An active P/TBV bound excludes rows with missing P/TBV. Market cap, debt/equity, P/E and trading liquidity are not available as these UI filters; a platform admission rule is not the same thing as a control you can adjust.

Why can a cheap-looking company be missing?

Admission requires a finite, positive P/NCAV no greater than 1, market cap of at least $1 million, and no .Q bankruptcy suffix. A company below the market-cap floor is excluded even if its ratio looks low. Missing or unusable inputs, or non-positive NCAV, do not establish a bargain.

Free is a 50-US-stock subset refreshed monthly; Pro is the global list published daily. A missing row is not evidence of an investment conclusion. Coverage, plan scope and optional filters all affect what you see. If your filters return no rows, widen or clear them rather than assuming no net-nets exist. See our methodology for the exact data schedule and admission rules.

What must I check after a stock passes the screen?

Recalculate NCAV from the latest filings using consistent currency and dates, then inspect receivables, inventory, cash burn, liabilities, dilution, trading liquidity and governance. These are manual diligence tasks, not promised screener features. Daily publication of the list does not mean balance sheets refresh daily.

Start with how to calculate NCAV, follow the screener research workflow, and use the 10-point research checklist to examine risks that a ratio cannot settle. Keep the accounting date separate from the market-price date so you understand what the comparison actually measures.

This guide is for information only and is not investment advice.