What Does Net-Net Mean?

By Kristi Waterworth – Updated Dec 13, 2025 at 3:20 PM EST

Key Points

Net-net investing seeks stocks priced below their liquidation value, offering a safety margin if the company fails.
The net-net calculation formula is: ((Current Assets - Total Liabilities) / Shares) x 0.66.
Distinct from "double net", net-net investing focuses on stock value, not real estate leasing terms.

Investors have all kinds of tricks up their sleeves when it comes to finding great deals. One of those tricks is hunting for net-net investments. Read on to better understand value investing and net-net meaning.

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An investor deciding whether to buy or sell. — Image source: Getty Images.

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Liquidation

The process of selling a company's assets to pay off its debts and distribute the remaining proceeds to shareholders.

When you divide the current assets minus the total liabilities by the number of shares, then multiply by 66%, you'll get a conservative estimate of what the value of the company should be if it were liquidated tomorrow. As long as the stock price is less than that number, you're gold. Buy the stock if you think it's safe to do so.

The formula is ( (Current Assets - Total Liabilities) / Number of Shares ) x 0.66. If this number is greater than the current stock price and you're confident it's a good deal, then buy -- simple as that. Be ready to sell when the stock price experiences a big bump.

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About the Author

Kristi Waterworth has been a contributing real estate and financial expert at The Motley Fool, covering real estate, investing, and personal finance topics, since 2020. Kristi has been interviewed by various TV media outlets and podcasts for her real estate investing expertise – from residential real estate to digital real estate and everything in between. Kristi’s journalist career spans over 25 years, and she has written about real estate investing, homeownership, and home construction specifically for the last decade. She was also previously a licensed Realtor and general building contractor before the Great Recession and housing market collapse. She holds a bachelor’s degree in American history from Columbia College in Missouri.

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