08 May 2012
A Pvt Limited Company having Subscribed & Paid Up Capital of Rs. One Lakh divided into 10000 equities of Rs. Ten each. Two Indian shareholders are holding 100% shares. A foreign national now willing to buy all shares. As on 31.3.2012 earning per share is Rs. 20.00.
Now approximately what would be the projected share value as on 31.3.2017 on 'discounted cash flow fund' method to come clear with RBI.
08 May 2012
You need to get the projected cash flows from the MANAGEMENT of the company. Then decide the rate at which the cash flows are to be discounted. Then you will be able to decide the VALUE.