Ajit (Business) (25 Points)
10 January 2009I 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
madhur gupta
(student/article )
(1022 Points)
Replied 10 January 2009
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
Prakash Popat
(3134 Points)
Replied 17 January 2009
Combination of Future Earning Potential & Assets based Method may be best option,subject to the purpose of valuation.
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