Valuation of shares

Jagdish (CA CS activities) (215 Points)

21 March 2016

How to do valuation of shares of a private limited company to transfer the shares within the company?

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CA PRATIK DHRUVE (CHARTERED ACCOUNTANT) (634 Points)
Replied 21 March 2016

Just value the shares based on net assets valuation done on the basis of fair market values of the assets and liabilities as on date of transfer.

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Jagdish (CA CS activities) (215 Points)
Replied 21 March 2016

Dear Pratik,

Can you provide the formula please?

CA PRATIK DHRUVE (CHARTERED ACCOUNTANT) (634 Points)
Replied 21 March 2016

(Fair Market Value of All assets - Fair Market Value of All liabilities) / Total Number of Shares in the company

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Jagdish (CA CS activities) (215 Points)
Replied 21 March 2016

Thanks Sir.

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