Valuation of shares "The valuation of unlisted shares is very subjective, particularly when it comes to setting a fair price for acquisition by the company or by the owners, co-shareholders." Share valuations are necessary because there are many circumstances in which private company stock must be valued, including* management buyouts, repurchases, or divestitures* determining a price for a company's purchase of its own stock* setting of a price for employee stock options and management incentive plans* domestic “tax” revenue assessments for capital gains tax, inheritance tax, tax contribution and stamp duty.* Determine a fair value in a legal or commercial dispute. What makes stock valuation difficult is that every company is different and individual circumstances must be examined in depth, in order to arrive at a given value, there are likely to be conflicting pressures between the parties, reinforcing the need for the assessment to be fully supported by reasoning and analysis. If you are looking to sell a business, you will look for the most appropriate price. Sometimes when companies want to take out a loan, they offer company stock as security for the loan. Usually, we use the stock market to value the company. a share but there are only 2000 companies out of 1.5 million on the stock market, the rest must be valued.