What does NAV mean in Misano’s valuation?

NAV here is last year’s book equity — the balance-sheet anchor the income (multiples) value reconciles against. It is not a third silent average into the headline. Full method: misano.ai/guides/how-we-value-companies-at-scale.

What is the 0.7–1.5× book equity band?

If income value sits between 0.7× and 1.5× book equity, reconciliation is OK and the multiples headline stays. The band is wide on purpose because EV-basis income is compared to equity without a net-debt bridge.

What is anchor pull vs interval?

When income value is below the band: ROE ≥ 5% → anchor pull (widen toward NAV because capital is earning); ROE < 5% → interval (headline = NAV↔income range; book leads because capital isn’t working).

When is NAV the primary method?

For the asset-heavy archetype: NACE 68, 93, or group 64.2, and assets/revenue ≥ 3× (capped at 20×). Then NAV is primary and income is secondary — still shown on the football field, not deleted.

NAV reconciles the income value.

Q: When is NAV the primary method?

For the asset-heavy archetype: NACE 68, 93, or group 64.2, and assets/revenue ≥ 3× (capped at 20×). Then NAV is primary and income is secondary — still shown on the football field, not deleted.

Multiples set the headline fair market value. That income number still has to clear last year’s book equity. Misano’s NAV reconciliation is a deterministic compare — state + reason in the UI, no AI — so a high EV/EBITDA mid cannot float free of the balance sheet.

The 0.7–1.5× band

Income value is always compared against last year’s book equity (NAV).
Band 0.7–1.5× book equity = OK: headline unchanged.
The band is deliberately wide — the engine is comparing an EV-basis income value against equity with no net-debt bridge yet. Admitting the basis mismatch beats inventing a fake bridge.

Anchor pull vs interval

Income value below the band + ROE ≥ 5% → “anchor pull”: the capital is actually earning, so widen the range toward NAV.
Income value below the band + ROE < 5% → “interval”: headline becomes the NAV↔income range; the capital isn’t working, so book value leads.
Above the band is the same reconcile pass with a structured recommendation — not a silent rewrite of the multiples mid into book.

Asset-heavy archetype

NACE division 68 (real estate), 93 (sport/recreation), or group 64.2 (holdings), and assets/revenue ≥ 3× (cap 20× so a holding with zero revenue doesn’t blow up) → NAV is primary, income secondary.
That flip is about capital structure of the business, not a preference for “conservative” adjectives.

What this is not

Not a net-debt bridge from EV to equity — still a tracked follow-up; the football field flags EV vs equity basis per bar instead.
Not silent averaging of multiples, Damodaran DCF, and NAV into one CZK. Triangulation stays visible: misano.ai/guides/value-band-is-triangulated.
Not a strategic premium or auction top. FMV remains for a financial buyer at the market median: misano.ai/guides/fair-market-value-for-a-financial-buyer.
Not a rewrite of the full valuation essay. Multiples cascade, normalization, staleness, NAV, DCF, and football field stay at misano.ai/guides/how-we-value-companies-at-scale.

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See also: misano.ai/guides/how-we-value-companies-at-scale, misano.ai/guides/value-band-is-triangulated, misano.ai/guides/fair-market-value-for-a-financial-buyer, and misano.ai/guides/how-to-value-a-private-company.