Can any one mail me the models for valuation of shares as per erstwhile CCI Guidelines for valuation of shares of a private limited company. My mail id is bnreddy.acs @ gmail.com. Thaking in advance for early response.
The most commonly adopted methods for valuation of shares are as follows:
Net Asset Value Method
Earnings Capitalisation Method
Yield Method
Market Price Method
Discounted Cash Flow Method
However, each method proceeds on different fundamental assumptions, which have greater or lesser relevance, and at times even no relevance to a given situation. Thus, the methods to be adopted for your case will depend upon the facts of the case.
I have a good article on Valuation of Shares. If you need to know more about valuation of shares I can mail it to you.
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Hi vinod... can u pls mail me the different methods of valuation of shares...
Plz advice me how to value shares of a private company as per the guidelines of controller of capital issue
Plz search google/ CAclub U ll find CCI guidelines.This is used for Pvt company share valuation to be alloted under FDI or any cross border share transfer.This is basically based on avrage of share value arrived under 'Net asset Method' & 'Discounted Cash Flow Method' subject to some conditions.This provision has no more existence in Companies Act 1956 .Only has a limited use for this as required by FEMA- FDI share valuation for Pvt. comp only