Expert Share Valuation Services & Valuation of Shares in India
Master Brains provides professional share valuation services for startups, private limited companies, investors and promoters. All valuations are conducted by experienced Chartered Accountants and IBBI Registered Valuers.
What is Share Valuation?
Share valuation is the exercise of understanding and determining the fair market value of a company’s equity at a given point in time. Practically, it is used for fundraising, merger and acquisition, compliance (under Income tax, ROC, IBC & FEMA), internal review and negotiations.
Why Fair Valuation of Shares is Required?
A company needs share valuation whenever equity is issued, transferred & reviewed. It is used for financial decisions. Our aim is to provide the fair and sound value that reflects the true position of your company today and its potential for the future.
Fair valuation of shares is relevant in:
1. Issue of Shares to Investors: To get the numbers right on how much equity should be offered in exchange for a specific investment amount.
2. Statutory Compliance: To meet requirements under the Companies law (Section 62(1)(c) of the Companies Act, 2013) and provisions of the Income Tax Rules, including Rule 11UA.
3. Cross-Border Transactions: Complying with FEMA and RBI pricing guidelines for investments.
4. Employee Benefit: Creating and pricing ESOPs and Sweat Equity.
5. Mergers, Acquisitions and Business Restructuring: Structuring the fair swap ratios during mergers, demergers and amalgamations.
6. Litigation, Disputes & Exit Negotiations: Providing an unbiased and independent value during shareholder litigation or family business settlements.
Who This Is For:
Our share valuation services cater to organizations and stakeholders of every kind, ranging from startups, SMEs, private and public limited companies to investors, promoters, family-owned businesses and all other entities across India.
To address these needs, our share valuation services are organised into six highly focused sub-services:
Share Valuation for Fundraising and Investment Rounds
When a company raises capital from angel investors, venture capital funds or private equity firms, equity share valuation is the central point of discussion.
Share Valuation for Mergers, Acquisitions and Transfers
During mergers, acquisitions or transfer of shares, fault-proof company share valuation is required to negotiate and settle every party involved fairly.
Share Valuation for Regulatory and Statutory Compliance
In India, for complying with several laws applicable on businesses, share valuation becomes necessary.
Share Valuation for ESOP and Sweat Equity
At Master Brains, we provide certified valuations using globally recognized models like Black-Scholes or the Binomial to estimate the fair value of options at the grant date.
Share Valuation for Shareholder Disputes and Litigation
In shareholder disputes, courts and tribunals require an objective and unbiased valuation.
Share Valuation for Exit Planning and Succession
A business exit and succession of the next generation is deeply personal and equally complex. At Master Brains, we conduct a careful exit valuation.
Share Valuation Methodologies We Use
Our share valuation services are based strictly on the International Valuation Standards and the ICAI Valuation Standards.
- The Income Approach (DCF)
We use this mostly for growing companies. We calculate the Free Cash Flows to the Firm (FCFF) and discount it using a risk-adjusted Weighted Average Cost of Capital (WACC) to the present value.
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- The Market Approach (Comparable Multiples)
We find what the market is paying for your close and similar companies.
A. Comparable Companies: We compare the company with similar businesses and use multiples such as EV/EBITDA, P/E ratio, or Price-to-Sales.
B. Comparable Transactions: We analyse the recent M&A deals in your specific niche and industry to get the values for you.
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- The Asset Approach (NAV)
This is used primarily for investment companies or asset-heavy industries. We have to adjust the book value of assets and liabilities to their actual market value.
We also use various other methods like dividend discount model, replacement method, Black-Scholes model and many more. We also use these methods in combination wherever applicable in the case.
Pre-Money Valuation vs Post-Money Valuation
Pre-Money Valuation: This is the value of the company before it receives a new investment.
Post-Money Valuation: This is the value of the company after the investment is made.
The formula is {Post Money Valuation = Pre Money Valuation + New Investment}
The Master Brains 7-Step Valuation Process
We do the best to get 100% accuracy and acceptance.
The steps with Master Brains look like:
- Start with Your Engagement: We sit and understand your business, purpose and vision to define the scope of work.
- Information Collection and Due Diligence: A review of 3-5 years of financial statements, projections and corporate records.
- Financial Adjustments: Financial statements are made sustainable and reflect the real operating performance.
- Selection of Valuation Methodologies: We use the financial methods, techniques and model that are suitable for your special business.
Valuation Modelling & Assumptions: We make financial models and test them against different risks. It involves weighted average cost of capital, sensitivity analysis and discounting to calculate the fair market value of shares.
Internal Review and Quality Control: We hold the highest quality standards in all our engagements. Each report undergoes strict technical review to eliminate errors, validate assumptions and ensure compliant documentation.
- Issuance of the Valuation Report: Finally, a formal valuation report by Master Brains is issued. When required under the Companies Act, 2013, the report is signed by an IBBI Registered Valuer. We also prepare the Rule 11UA valuation report.
Share Valuation FAQs
1. What do you mean by share valuation?
Share valuation is the way to compute the correct value of a company’s equity. With consideration of financial performance, market benchmarks and assets, we calculate a price per share.
2. What are the 5 methods of valuation?
The five most used methods are Discounted Cash Flow (DCF), Dividend Discount Model, Comparable Company Method, Net Asset Value and Replacement Method within the three-valuation approach.
3. How is valuation calculated?
Valuation is calculated by analysing historical financials, forecasting future cash flows, selecting appropriate valuation methods and applying risk-adjusted discount rates to arrive at the fair market value of equity.
4. Is valuation of shares mandatory?
Yes. It is mandatory for valuation of shares under Income Tax Act (Rule 11UA), FEMA (for cross-border transfers), the Companies Act 2013 (for preferential allotments) and the Insolvency and Bankruptcy Code (IBC) for liquidation values.
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The valuation must be performed by a registered or certified valuer, depending on the law.
5. How many types of valuation do we have?
We value using three approaches: the Income Approach (future cash flows), the Market Approach (relative market pricing) and the Cost/Asset Approach (replacement cost of net assets).
6. How do you value a private company?
A private company is valued by analysing its financial results and future earning potential, with adjustments such as a discount for lack of marketability as they are not freely traded.
7. How long is a valuation report valid?
For RBI filings, a valuation report is usually valid for 90 days. It will, however, become immediately invalid if a material event like a large financial loss or market shift takes place.
8. What are the steps of valuation?
The process involves defining purpose, data collection, financial adjustment, financial modelling, share valuation by CA and certification by an IBBI Registered Valuer/CA. It extends to business and startup consulting.
About Master Brains: Your Share Valuation Partner in Excellence
Share Valuation Services by Master Brains is a combination of science & strategic art. We strongly believe in honest numbers and methods.
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Our work is driven by depth of analysis, regulatory clarity and practical execution.
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We handle every engagement with a clear, step-by-step process and strict quality control check. We ensure your equity share valuation stands up to scrutiny from investors, auditors, regulators and legal forums. At Master Brains, the emphasis is on helping clients make informed, right decisions with financial reasoning.
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We frequently perform company share valuation for private limited companies raising capital or restructuring ownership.
Our valuations are trusted by promoters, investors, auditors and legal professionals across India.
All valuation of shares at Master Brains is performed by CA-led teams and IBBI Registered Valuers. This is performed strictly following ICAI Valuation Standards and International Valuation Standards.
Are you ready to get BIS certificate for your business growth?
Don’t Leave a Chance with Your Company’s Value
Need a certified Share Valuation Report by CA and IBBI Registered Valuer? Speak with Master Brains today for a compliant, defensible valuation accepted by investors, tax authorities and regulators.
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Whether you require valuation of unquoted shares, a Rule 11UA valuation report or a share valuation report for investor negotiations, Master Brains ensures accuracy, compliance and defensibility.
 Tell us your share valuation needs and learn how Master Brains Consulting can help you achieve successful results.
Together, let’s take your business to new horizons in India and globally.
We are a Delhi based Consultancy aiming to provide a host of Financial, Legal, and Taxation consultancy services.
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