Valuation Of Shares/ Business

The need for a business appraisal or share valuation may arise in many different commercial circumstances, including:

Issue and transfer of shares to Non residents ( valuation of shares on DCF method for RBI purposes)

• Retirement of owners and disposal to next generation of management

• Pre-flotation or trade sale

• Departure of minority shareholder from employment in the business

• Introduction of venture or development capital

• Company purchasing its own shares

• Management buy-ins

• Trade investments

• Share option schemes

• Independent advice to directors for Companies Act, Sarbanes-Oxley and other regulatory and compliance purposes.

In financial parlance, Valuation means how much a company is worth of. Talking about equity investments, one should have an understanding of valuation. Valuation means the intrinsic worth of the company. There are various methods through which one can measure the intrinsic worth of a company. We aim at providing a basic understanding of these methods of valuation.