Register and Setting up a UK Limited Company

Login / Register Company Formation Packages LLP Incorporations Why Choose Us Free Business Banking Ready Made Companies Regent Street Services Dormant Company Formation Apostille and Notary Services Certificate of Good Standing Company Dissolution Company Name Change Company Registers Company Restoration Services Company Seals & Wafers Dormant Company Accounts Renewals VAT Registration
Company Formations Just Became Easier!
1. Company Directors can protect their home address details.
2. You are no longer required to have a Company Secretary.
Feedback :
Comp Faqs Vicky. Thank you for all the help and support you gave me in forming my first company. Your patience and understanding was far and above what I normally receive when buying online. George, Brighton.      

Valuation of Shares


It is usual for some form of valuation exercise to be carried out when a company is issuing new shares or when the company itself is being sold. The valuation will seek to determine the current worth of the shares. 

In the case of public quoted companies, the valuation exercise has a defined starting point. A market place already exists in which the company's shares are traded regularly on a recognised exchange, for example, the London Stock Exchange. The share price of the company would provide a reasonable starting point for valuing additional shares to be issued by the company or for the business itself.

In smaller companies with few assets and insubstantial trade, the value placed on each share may be its nominal value. 

In business entities where there are plentiful assets (some of which may be intangible), more complex and substantive work will be required. Accountants may be brought in to provide an up to date valuation and produce a report outlining their assumptions, methodology and conclusions.

For trading limited companies there are different valuation models which are sometimes employed to find the value of a company or its shares.

The different valuation models are:

  • Net asset values
  • Discounted earnings
  • Scrap or break up value
  • Replacement cost
  • Multiples of turnover

In practice, these valuation methods will be used to find a minimum and maximum value. The parties then negotiate, weighing up different factors to arrive at an appropriate final figure.

Email This Page  Print This Page

Free Company Name Search

Contact Details:
  +44 (0)2920 488 688
  +44 (0)207 1181 800

About Us
Contact Us
Getting Started
What You Receive
How to Form a Company
About Us
Site Search

Customer Comments