Net tangible asset value is a conclusion of value derived under the asset-based approach. This approach values a business based on the fair market value of its assets net of its liabilities. The various interpretations (Options A, B, and C) all relate to calculations based on balance sheet items—assets and liabilities. "Probable future earnings" (Option D) is the fundamental basis for the income approach to valuation (e.g., capitalization of earnings or discounted cash flow methods), which is conceptually distinct from the asset-based approach. Therefore, future earnings are not an interpretation of net tangible asset value.

A. Gross assets net of accumulated depreciation: This represents the net book value of tangible assets, which is a common, albeit unadjusted, starting point for an asset-based valuation.

B. Net current value of the financial assets and the tangible assets less current liabilities only: This is a variation of a net asset calculation, sometimes used to analyze a company's liquidity and short-term solvency alongside its fixed assets.

C. Net current value of the financial assets and the tangible assets minus all liabilities: This is the most common and comprehensive definition of net tangible asset value, representing the tangible equity of the business.

1. Pratt, S. P., & Grabowski, R. J. (2008). Valuing a Business: The Analysis and Appraisal of Closely Held Companies (5th ed.). McGraw-Hill.

Chapter 13, "The Asset-Based Approach," pp. 321-323. This chapter explicitly defines the asset-based approach as being based on the value of the company's assets net of its liabilities. It contrasts this directly with the income and market approaches, which are based on earnings capacity and market multiples, respectively.

2. Hitchner, J. R. (2017). Financial Valuation: Applications and Models (4th ed.). Wiley.

Chapter 5, "The Asset (or Cost) Approach," p. 201. The text states, "The asset approach provides an indication of value using the economic principle that a buyer will pay no more for an asset than it would cost to obtain an asset of equal utility... This is in contrast to the income approach, which focuses on future expected economic benefits (e.g., cash flows)." This clearly separates the concept of asset value from future earnings.

3. NACVA. (2021). Fundamentals, Techniques & Theory. National Association of Certified Valuators and Analysts.

Module 2, "Valuation Approaches and Methods," Section on The Asset Approach. The official NACVA training material defines the asset approach as a general way of determining a value indication of a business, business ownership interest, or security using one or more methods based on the value of the assets of the business net of liabilities. It is presented as distinct from the Income Approach, which is based on "probable future earnings."