In the Indian business context, the value of company shares is assessed by the share valuation report, its usage in companies is mentioned in the following.
Understanding Share Valuation Reports: The share valuation report determines the fair value of shares and is assessed by factors like industry trends, market conditions, financial performance, and future prospects of the company.
Common use of share valuation reports by Indian companies are mentioned below
These reports help in determining the share prices that can be offered to potential investors when the company wants to issue new shares.
Share valuation reports help in assessing the share value of the target company by arranging the exchange ratio or purchase price.
The compensation package includes stock options as the share valuation reports determine the stock option’s fair value by ensuring transparency and fairness for employees.
These reports assist in price evaluation at which they can redeem shares from present shareholders and they also aid in giving exit options to shareholders who wish to sell their shares.
Share Valuation Reports resolve disputes related to share value, serving as a reference point for fair resolutions.
