Dear All
A Pvt. Ltd company want to convert director loan into equity. Company book value of a share is Rs.30/- may I know how to calculate fair value of a share ? and also let me know can pvt. Ltd. Co. issue share at premium to directors?
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Share valuation
Replies (6)
Dear Friend there are several methods for valuation of shares. No one can say what is the fair value.
it depends upon the parties how they see whats the worth of share.
But if everything stated in Balance Sheet is correct then book value of share can indicate the fair value.
And yes pvt company can also issue shares at premium
Thanks bro could you pls mention an method of share valuation with example?
1.NET ASSETS VALUE METHOD
2. BOOK VALUE METHOD
can you pls tell me in brief with examples of both the methods?
Still not any satisfied reply?
Pankaj its not that easy to explain the methods here. But Wait m trying to work on this.
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