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SHARES VALUATION FOR PVT LTD CO.

This query is : Resolved 
 


Querist : Anonymous (Querist) 12 December 2009

HI ALL,

CAN ANYBODY SUGGEST THE PROCEDURE TO CALCULATE THE VALUATION OF SHARE OF PVT LTD CO.

ANY PARTICULAR METHOD SHOULD FOLLOW OR ANY PARTICULAR FORMAT FOR THE SAME....

PLZ REPLY ASAP.

NAYAN


Rasesh (Expert)
12 December 2009

The final valuation should be arrived at using the following methods and assigning different weightages to them:
1) Net Asset Values (Book Values)
2) Net Asset Values (Market Values)
3) Profit Earning Method
4) Discounted Cash Flow


Querist : Anonymous (Querist) 14 December 2009

Thanks Mr. Shah

Can you send me formula or procedure for the same???

Jag Bhushan Sharma (Expert)
14 December 2009

1. Put the assets at their fair value.

2. Deduct from that all outside liabilities.

3. Divide the resultant figure by no. of outstanding shares, you will get the value of the share of a privage company.

4. Take the average of last three years profits and capitalise it by the rate of return of that industry.

5. Divide this figure by number of shares, you will get the value of the share.

6. Add the value of share as obtained above at 3 and five and divide by two. This can



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