Urgent Please

 

Dear All

 Please let me know how to calculate book value of unlisted company share?

Your answer for the same question is as below:

• Net asset value method of calculation of the book value : Net worth divided by the total number of shares issued. Let us assume that the net worth of the company is Rs. 2 crore or Rs. 20,000,000 and the number of shares issued is 8,00,000. Then the book value per share is Rs. 25.
• Fair price based on the capitalization of average profits for the last three years : Let us assume that the average profits for the last three years is RS. 44,00,000. The rate of capitalization is taken to be 20% - the current yield on the company’s debenture (the yield on debentures of unlisted companies tends to be on the high side). A fair price then would be average profit multiplied by 100, divided by the current yield per debenture: the product then divided by the number of shares issued. Or, to be divided by the number of shares