Every mNAV variant, side by side
Basic ignores dilution and debt. Diluted counts convertible shares — but only when the stock is above the conversion price. Enterprise-value folds the whole capital structure in. The naive-diluted row shows what you get if you count out-of-the-money converts as shares anyway.
| mNAV variant | Value | $ per $1 of coin |
|---|
Diluted mNAV across the conversion price
Convertibles only dilute above the conversion price, so diluted mNAV jumps the moment the stock crosses it. Below it, the notes are a cash debt and the honest picture is enterprise-value mNAV.
| Share price | Convertible state | Diluted mNAV |
|---|
Basic mNAV flatters a leveraged treasury
The headline number treasury bulls quote is almost always basic mNAV — market cap over coin value — and it is the most flattering one, because it ignores both the dilution stacked in the convertibles and the debt stacked on the coins. A company at 1.4× basic mNAV can be well above 1.4× once the in-the-money converts are counted, and its enterprise-value mNAV can be higher still if it carries out-of-the-money notes that are really debt. The single most common error, made even by dashboards that should know better, is applying the if-converted method mechanically: adding every convertible's shares to the count no matter where the stock trades. That double-punishes an out-of-the-money note — it inflates the share count as if the note dilutes, when in reality the note will be repaid in cash and the correct place to capture it is enterprise value, not diluted shares. This calculator keeps the two straight. For whether that cash debt is survivable, use the treasury debt and solvency calculator; for whether the premium is worth paying as a shareholder, the DAT premium payback calculator; and for the company's own accretion decision, the issuer mNAV and accretion calculator.
The math
Start with market cap MC = S × N (share price times shares outstanding) and coin value V = H × P. Basic mNAV = MC ÷ V. For the diluted version, convertible notes with face F and conversion price K would become F ÷ K new shares — but only if the stock is at or above K. So diluted shares are N + (F ÷ K) when S ≥ K, and just N when S < K, giving diluted mNAV = (S × diluted-shares) ÷ V. The naive diluted number ignores moneyness and always adds F ÷ K — the row we show so you can see how much it overstates the count when the note is out of the money.
Enterprise-value mNAV = (MC + total debt + preferred − cash) ÷ V captures the whole structure regardless of moneyness, which is why it is the right lens for a levered treasury: an out-of-the-money convertible drops out of diluted shares but stays in EV as debt, exactly where it belongs. This is a first-order model — it treats the convertible as a single tranche at one conversion price, ignores option overhang, coupon accrual and the time value that keeps a near-the-money note from cleanly converting, and assumes preferred is a debt-like claim. It is built to compare the three mNAV lenses honestly, not to reproduce a filing's diluted EPS footnote.