I wish to know how shares are valued in unlisted ltd companies .Are there any guidelines for the same by any statuatory body?Are fixed assets like building etc also valued while divesting shares on prorataa etc?
Regards
Ram
I wish to know how shares are valued in unlisted ltd companies .Are there any guidelines for the same by any statuatory body?Are fixed assets like building etc also valued while divesting shares on prorataa etc?
Regards
Ram
no there is no such legal method for valuation of shares
but practically present value of future cash flows is used to value the business
n an that basis business can be valued
Combination of Future Earning Potential & Assets based Method may be best option,subject to the purpose of valuation.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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CAclubindia
