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Valuation

Share Valuation Method Selector

Virtual AuditorPublished: 23 Mar 2026🕒 1 min readLast updated: 14 Aug 2026

by CA V. Viswanathan
FCA, ACS, CFE, Registered Valuer (S&FA) | Since 2012

Share Valuation Method Selector

Identify the appropriate business valuation methodology based on your regulatory purpose, company stage, and available data. Powered by Virtual Auditor.

Frequently Asked Questions (FAQs)

1. What is the Share Valuation Method Selector?

The Share Valuation Method Selector is a tool powered by Virtual Auditor that assists users in identifying the most appropriate business valuation methodology based on their specific regulatory purpose, the current stage of the company, and the availability of data for their valuation requirements.

2. Who developed the Share Valuation Method Selector?

The Share Valuation Method Selector was developed by CA V. Viswanathan, who is an FCA, ACS, and CFE, as well as a Registered Valuer (S FA). He has been providing this resource since 2012 to help professionals navigate complex business valuation requirements and regulatory standards.

3. Can this tool be used for SEBI compliance?

Yes, the Share Valuation Method Selector includes SEBI compliance for listed or to-be-listed companies as one of its supported regulatory purposes. Users can select this purpose within the tool to identify the correct valuation methodology required for meeting SEBI's specific regulatory standards and reporting obligations.

4. How does the tool determine the valuation methodology?

The tool determines the appropriate business valuation methodology by evaluating three core criteria provided by the user: the regulatory purpose of the valuation, the stage of the company being valued, and the specific data that is currently available for the process to ensure compliance with relevant financial laws.

5. Is the tool applicable for insolvency valuation?

Yes, the Share Valuation Method Selector lists insolvency valuation under the IBBI framework as one of its defined purposes. This allows users to identify the correct methodology when performing valuations for insolvency proceedings as mandated by the Insolvency and Bankruptcy Board of India requirements.

Share Valuation Method Selection Framework

Valuation method selection in Indian corporate practice is driven by the regulatory context and asset profile: (a) DCF — for going-concern businesses with predictable cash flows; (b) Comparable Companies / Comparable Transactions — where peer set is identifiable; (c) NAV-FMV — for asset-heavy / holding companies; (d) Option Pricing Method (OPM) — for cap tables with multiple share classes (CCPS, CCD); (e) PWERM — for late-stage companies with clearer exit-scenario visibility.

Regulatory contexts and method preferences: Section 56(2)(viib) — Rule 11UA(2) DCF / NAV-FMV; FEMA pricing — DCF / Comparable; Ind AS 113 fair value — three-level hierarchy with method match; Section 50C — circle-rate-anchored with valuer adjustment; IBC Resolution Plans — fair value and liquidation value by IBBI Valuer.

This selector recommends the method based on context, business stage, and asset profile. For full valuation execution including IBBI Valuer signed report, consult CA V. Viswanathan at +91 99622 60333.