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Share price to
Net Tangible Assets (NTA)

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It is important to take note of where the share price is trading relative to the net tangible assets.

Investors in Listed Investment Companies often talk about shares trading at a 'discount' or 'premium' to NTA, below is an explanation of what this means.

Share Price is the current price of an AMCIL share on the ASX. Net Tangible Assets per share (NTA) is the value of the total portfolio divided by the number of shares on issue.

Using a simple example, if the value of the total portfolio is $100 and the number of shares on issue is 10, then the NTA is $10 per share.

NTA per shareShare priceTrading
$10$11At a premium
$10$9At a discount

The chart below outlines where the AMCIL share price has been trading relative to the NTA at the end of each month.

On occasions the Company’s share price can trade at a discount or premium to net asset backing i.e. the value of the portfolio per share. A number of different factors influence this discount/premium including:

  • Market perception of AMCIL’s future earnings potential and dividends
  • Supply and demand for shares at any one time can fluctuate because of the liquidity in the shares, investor sentiment and expected future performance