valuation of shares

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CA Seema (Querist)
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16 September 2008 Dear All,

What is the method of valuation of shares of closely held company. I think we have to use CCI formula to calculate the share price. can you help me with the CCI formula?

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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02 October 2008 PE ratio plays a crucial role in this regard. Ascertain the company's past three years p/e ratio and and also the likely for the next two years. Coservatively the average p/e ratio can be taken for projecting the price.

CCI formulla is an average of intrisic value and p/e ratio capitalised at an acceptable discount percentage.