the value of an asset depends on the nature of the asset.
Is the asset like a performance bond, where you get a periodic payout , and at some point in the future the asset is bought back by a big payout followed by no value to owners after that?
is the asset a dividend stream with no final payout (so more like a bond that never gets redeemed)
Do the asset ownership entail ownership some of the assets of the issuer? Is there a way to hand in the asset, and get title to the assets, or get settled monetarily?
is the asset owner bound to pay dividends on a fixed percentage of income, or is the income fixed in numbers, and any additional economic value in the "asset-company" go to the "owner/issuer", not "asset owner/lender/investor"
When that is sorted out, you can decide on a future real interest rate curve, measured in some currency (fiat or burst) and determine expected future payouts far into the future, and then calculate the net present value, under the assumption of the future real interest curve.
when net present value has been calculated,
you could do a share buyback , and then re-calculate net present value for the shares left outstanding.
buyback was only a good thing for the remaining owners, if the re-calculated net present value is higher than the pr-buy back net present value.
So it seems the NAV is subject to some objective estimates on future real interest rates , and therefor impossible to get exactly right.
Still, it is of course possible, and perhaps beneficial for an asset to have put in a scheme for buying back assets at a price lower than some estimated NAV - both as a service to asset holders who wants out at some specific time, and as a service to the asset holders who hang on, who then get a higher estimated NAV going forward (basically higher expected future payouts plus redemption value)
You would have to adjust any limit orders as burst price rise and fall, or else your buy prices might suddenly be too generous if burst price is up a lot.
i'm thinking something along these lines :
(the 0.6 is an example)
- set buffer to 0.6
- calculate current NAV in burst
- put in limit buys at NAV*buffer
- wait for NAV measured in burst to move by a factor of buffer/2
- re-calculate NAV measured in burst
- move limit buys to NAV*buffer
You could also put in sells at buffer = 1.4 or someplace else in overvalued-land
Because burst tends to move a lot in price, you need a big buffer or you need to monitor and update prices regulariy, or you need to make the bids and asks only small positions, or you need to change the scheme into market buying and selling at the time NAV is calculated, and not as a floor/ceiling limit order that stay on as NAV drifts around after having been calculated.