Definitions for "Asset Backing"
Useful check for investors that can be related to the firm's earning capacity. Asset backing = Net assets of a company (in $) / Number of issued shares. For example: XYZ Ltd with $100,000 net assets and 10,000 shares issued has an Asset Backing of $10.00 per share.
A handy indicator of corporate worth. It can be ascertained by dividing net assets of a company with the number of shares issued.
asset backing = net assets of a company (in $) divided by number of issued shares. This is a useful check for investors that can be related to a company's earnings capacity.