Urgent Please

Pankaj Arora (Learner) (3134 Points)

27 May 2011

Dear All

Please let me know how to calculate book value of unlisted company share?

Reply
Follow
Share

3 Replies

Sonia Kapoor (Asst Manager) (56 Points)
Replied 27 May 2011

Originally posted by : Pankaj Arora

Dear All

Please let me know how to calculate book value of unlisted company share?

Your answer for the same question is as below:

Net asset value method of calculation of the book value : Net worth divided by the total number of shares issued. Let us assume that the net worth of the company is Rs. 2 crore or Rs. 20,000,000 and the number of shares issued is 8,00,000. Then the book value per share is Rs. 25.
Fair price based on the capitalization of average profits for the last three years : Let us assume that the average profits for the last three years is RS. 44,00,000. The rate of capitalization is taken to be 20% - the current yield on the company’s debenture (the yield on debentures of unlisted companies tends to be on the high side). A fair price then would be average profit multiplied by 100, divided by the current yield per debenture: the product then divided by the number of shares issued. Or, to be divided by the number of shares