The Net Value Investing Strategy was developed by Benjamin Graham using Net Current Asset Value per Share (NCAVPS) as the primary metric for evaluating the value of a stock.
According to a pure-to-pure strategy, the ability to generate income from current assets is the true value proposition of a business.
Current assets, which are used in the net-to-net approach, are defined as assets that are cash and assets that turn into cash within 12 months, including accounts receivable and inventories.
The net-net investment strategy does not take into account long-term assets or liabilities, which, according to its critics, makes it unreliable for long-term investments.