Valuation Methodologies — An Overview

There are many methodologies that a valuer may use/consider to value the shares of a Company / Business. Though different values arrive under various methods, it is necessary for a valuer to arrive at a fair value. In practice, the valuer normally uses several methodologies of valuation and arrives at a fair price for the entire business.

When a Business or Shares are transferred from one party to another, it becomes very important for both buyers as well as the seller to know what is the worth of that particular asset that is being transferred.