GRADUATE WORK

on the topic: "Evaluation of the market value of a 100% stake in OJSC"

Introduction

1.2 Approaches and methods for determining the market value of an enterprise

1.3 Methods used for business valuation

1.3.1 Income approach

1.3.2 Cost (property) approach

1.3.3 Comparative approach

Chapter 2. Assessment of the market value of a 100% stake in OJSC

2.1 Overview of the global oil market

2.1.1 General characteristics of the economy in the Russian Federation

2.1.2 Current state of oil refining in the Russian Federation

2.2 Brief description of the enterprise being assessed

2.2.2 General characteristics of the assessment object

2.2.2 Structure of the authorized capital

2.2.3 Characteristics of the region

2.2.4 Production

2.2.5 Sales of products

2.2.6 Development prospects

2.3 Analysis of the financial condition of the JSC

2.3.1 Analysis of financial ratios

2.3.2 The main conclusion from the analysis of the financial condition of the enterprise

2.4 Estimation of enterprise value

2.4.1 Using the income approach (determining the market value of an enterprise using the discounted cash flow method)

2.4.2 Using the cost approach (determining the market value of an enterprise by the method of asset accumulation)

2.4.3 Reconciliation of results

Conclusion

Bibliography

Introduction

Our country's transition to a market economy required the in-depth development of a number of new areas of science and practice. The process of privatization, the emergence of the stock market, the development of the insurance system, the transition of commercial banks to issuing loans secured by property create the need for a new service - assessing the value of an enterprise (business), determining the market value of its capital.

The capital of an enterprise is a unique and complex product; its nature is largely determined by specific factors. Therefore, a comprehensive assessment of capital is necessary, taking into account all relevant internal and external conditions for its development. Of course, we can use the experience of other states, but the complexity of the task lies in the fact that so far no one in the world has transferred such a huge economic complex with an administrative-command system in the economy to a market economy, and there are no historical analogues to this process.

The state, by selling economic objects at minimum prices, loses the right to appropriate future income, and often the actual owners of enterprises - their employees - also lose these rights. In order for the valuation of an enterprise to be reliable and accurate, it is necessary to strictly adhere to the valuation technology.

The technology includes a number of successive stages: determining the purpose and function of the assessment, developing a plan for assessing the object, determining the best and most effective way to use the object, collecting and analyzing the necessary information. The accuracy of enterprise value assessment also depends on the correct use of methods.

The need to determine the market value of an enterprise is not limited to purchase and sale transactions. There is an increasing need to evaluate the business of enterprises also with numerous and complex options for realizing the value of property rights - corporatization, attracting new shareholders and issuing additional shares, calculating taxes, using inheritance rights. Determining the market value of an enterprise helps prepare it for the struggle for survival in a competitive market and gives a realistic idea of ​​the potential capabilities of the enterprise. The process of assessing the business of enterprises serves as the basis for developing its strategy. It identifies alternative approaches and determines which one will provide the company with maximum efficiency, hence a higher market price. And this, in turn, is the main goal of the owners and the task of management firms in a market economy.

Chapter 1. Theoretical foundations of business valuation

1.1 Basic concepts and definitions

According to the Federal Law "On Joint Stock Companies" adopted by the State Duma on November 24, 1995.

Joint stock company(hereinafter referred to as the company) is recognized as a commercial organization whose authorized capital is divided into a certain number of shares certifying the obligatory rights of the company's participants (shareholders) in relation to the company.

Society can be open or closed, which is reflected in its charter and corporate name.

Open Society has the right to conduct an open subscription for shares issued by it and carry out their free sale, taking into account the requirements of this Federal Law and other legal acts of the Russian Federation. An open company has the right to conduct a closed subscription for the shares it issues, except for cases where the possibility of conducting a closed subscription is limited by the charter of the company or the requirements of legal acts of the Russian Federation. The number of shareholders of an open company is not limited.

In an open company, it is not allowed to establish the preemptive right of the company or its shareholders to acquire shares alienated by the shareholders of this company.

A company whose shares are distributed only among its founders or another predetermined circle of persons is recognized closed society. Such a company does not have the right to conduct an open subscription for the shares it issues or otherwise offer them for acquisition to an unlimited number of persons.

According to the Law "On Joint-Stock Companies", the authorized capital of a company is made up of the par value of the company's shares acquired by shareholders, which is the sum of the par value of shares in circulation.

The Law of the Russian Federation “On the Securities Market” gives the following definition of a share:

Promotion- an issue-grade security that secures the rights of its owner (shareholder) to receive part of the profit of the joint-stock company in the form of dividends, to participate in the management of the joint-stock company and to part of the property remaining after its liquidation. A share is a valuable registered security. In terms of shareholder rights, shares are divided into ordinary and preferred.

Ordinary shares provide the owner with the right to participate in the general meeting of shareholders with the right to vote on all issues. The owner of ordinary shares has the right to receive dividends, and in the event of liquidation of the enterprise, the right to receive part of the enterprise's property in the amount of the value of the shares owned by him.

Preference shares do not provide their owners with the right to participate in shareholder voting, unless otherwise established by the Law of the Russian Federation “On Joint-Stock Companies” or in the charter of the joint-stock company. Thus, in accordance with the law, owners of preferred shares receive the right to participate in a general meeting of shareholders with the right to vote when resolving the following issues:

on the reorganization and liquidation of the enterprise;

on introducing amendments and additions to the charter of the joint-stock company, limiting or changing the rights of shareholders and owners of preferred shares.

The privileges of the owner of such a share is that the charter must define the amount of the dividend that must be paid (at least partially), as well as the value paid upon liquidation of the joint-stock company, which are determined in a fixed amount or as a percentage of the nominal value preferred shares. In addition, during the liquidation of a joint stock company, payment of accrued but unpaid dividends on preferred shares and the liquidation value determined by the company's charter is carried out before the distribution of the property of the liquidated company among the owners of ordinary shares.

The issuer's shares are subject to the following provisions:

The purchase of shares by investors is considered as long-term financing of the issuer's costs by shareholders.

Having received funds through the placement of shares, the issuer has the opportunity to use them, by decision of the general meeting, in whole or in part for the formation of production and non-production fixed and working capital.

Investors in stocks are attracted by the following:

Right to income, i.e. to receive part of the net profit of the joint-stock company in the form of dividends.

An increase in the market value of shares associated with an increase in the company's equity capital.

Additional benefits that a joint stock company can provide to its shareholders.

Preemptive right to purchase new issues of shares.

Share par value- this is what is indicated on its front side. The par value of all ordinary shares of a company must be the same and provide all holders of shares of this company with an equal amount of rights. The first valuation of shares during the period of their issue is nominal.

Issue price is the price of the share at which the first holder purchases it. For all subsequent issues, shares are sold at market value.

Market price- this is the most probable price at which a given valuation object can be alienated on the open market in a competitive environment, when the parties to the transaction act reasonably, having all the necessary information, and the transaction price is not affected by any extraordinary circumstances, that is, when:

1) one of the parties to the transaction is not obliged to alienate the object of valuation, and the other party is not obliged to accept execution.

2) the parties to the transaction are well aware of the subject of the transaction and act in their own interests.

3) the valuation object is presented to the open market in the form of a public offer.

4) the transaction price represents a reasonable remuneration for the object of evaluation, and there was no coercion on the part of the parties to enter into the transaction.

Valuation of company shares - this is a study of the market value of that share of the enterprise that accounts for the block of shares in question. This procedure can be carried out to determine the price of preferred and ordinary securities that are issued by both closed and open joint-stock companies.

The main way to make a profit from shares is to receive dividends and financial, economic and strategic development of the company, expanding the business and increasing the value of assets. And therefore, when evaluating the shares of an enterprise, the Active Business Consulting company actively uses the method of the capital market, net assets, as well as capitalization of profits and discounting of cash flows.

What do we mean by company shares?

A share is a security that is evidence of the investment of a share of capital or a certain amount of funds in a joint stock company, and which, as a result, gives the right to receive profit from the development of the enterprise in the form of dividends.

Unlike other securities that have a fixed income (for example, a bill, a bond) and are redeemed in accordance with their par value upon expiration, the shareholders of the enterprise do not bear the obligation to repurchase shares. The price, or, as they say on the stock exchange, the quotation of shares is established based on the relationship between supply and demand on the open market.

When considering a certain package of securities, it is always possible to distinguish what type it belongs to - majority or minority. Majority is a block of shares characterized by the presence of more than 50% of all shares of the enterprise - this gives the owner the right to manage it and appoint management. Meanwhile, it is worth noting that in practice, when the shares of a company are owned by various investors, the threshold determining whether it is a controlling stake or not may be lower. In some cases, a 30% stake may well be a majority stake - the division into types is conditional. A minority stake is not a controlling stake, it is below the majority level.

The classification into majority and minority stakes is determined by the fact that, depending on the size of the stake, there is a premium and discount for control. The amount and percentage of the discount or premium is determined by the method used to evaluate the company's shares.

It must also be said that a block of shares has a more real character of rights than one individual share. But this leads to the disadvantage of the package - it is less liquid. An individual share is much easier to sell on the open market. A block of shares is of interest to serious investors who carefully analyze the market situation and are able to predict the successful development of the company. And this is another reason why valuation of company shares is a fairly popular service.

In what cases is the company's shares assessed?

Valuation of company shares carried out in the following cases:

Carrying out transactions for the purchase and sale of shares;

Enterprise restructuring - going through the procedure of merger, liquidation, acquisition or separation of business units from the holding structure;

Contribution of a block of shares to the capital of a legal entity;

Determining the value of collateral for obtaining a loan;

Transfer to trust management.

Why is valuation of company shares needed?

Valuation of company shares is the first step to bringing security to investment. Fundamental analysis of the market and the financial condition of the enterprise will eliminate possible errors in the face of constant fluctuations in securities prices. Achieving confidence in decisions made, having all the reasons, and even justification, for investing funds - these are the advantages that valuation of company shares.

What do we mean by valuation of a company's shares?

Valuation of company shares is set with the purpose of determining the most likely price at which a given object can be sold on the open market in conditions of competition and when both parties act based on their own interests and wisely, having all the information about the object.

Basis of the procedure valuation of company shares is the study of value as a financial instrument capable of generating profit. Shares can bring profit to their owner in the form of dividends and an increase in the value of the enterprise - factors associated with business expansion and improved financial performance.

Most influential on the final result valuation of company shares factors include the size, degree of control and liquidity of the shares. The degree of control is the premium or discount for the additional rights that a stock provides. For example, if the stake in question is a controlling stake in the enterprise, then it must be taken into account that it gives its owner the right to appoint management and manage the company. The control premium is about 30 percent compared to the average price of a block of shares. The discount for non-controlling nature is about 15-20%. An important characteristic is also the liquidity of securities - the highest indicators will be those shares that belong to open joint-stock companies listed on stock exchanges. The least liquid are shares of closed companies that are not publicly traded on the market.

The presence of such advantages among shareholders owning a controlling stake makes it impossible to carry out simple calculations upon receipt valuation of company shares. It is also impossible to determine the value of a company simply by multiplying the actual market value of the shares by the number of shares.

Calculating the share of property that falls on the share package in question is very interesting and useful information for investors and buyers - however, it is a rather difficult task for an independent appraiser. The Active Business Consulting company uses an integrated approach to valuation of company shares, and guarantees the most accurate result among all possible.

What value can be determined by the valuation of the company's shares?

Nominal value - formed on the basis of official statements about the price of shares to enterprises. The face value is perhaps the main characteristic of a stock. It is from this that the approximate (but not exact) value of the security in question can be determined. The par value is the same for all ordinary shares, but does not take into account preferred shares;

Market value - if shares are placed on the open market, it is established based on the share price on the securities market. In practice, the nominal and market value are not equivalent or even approximately similar - a developing enterprise will have a higher market value of shares than an organization that has financial problems. The market value of the company's shares is determined based on the relationship between supply and demand;

The book value is reflected on the balance sheet of the enterprise, and is calculated based on the amount of the company's share capital, equal to the totality of the property complex for the amount of liabilities and capital contributed by the owners of preferred shares. In isolation valuation of company shares to determine the book value is not carried out - this is because it largely depends on the accounting policies of the organization. Often, book value is used as a characteristic of the security of an enterprise's shares;

Liquidation value is the price that will be received by the shareholder when carrying out the procedure for liquidating the enterprise and selling its assets at auction or auction in a short time, repaying obligations and making payments on preferred shares;

Investment value is the value that an investor is most interested in - it reflects the return and profitability of a stock.

What approaches are used to evaluate a company's shares?

Cost-effective approach. Formed on the principle that the buyer will not pay more than what is necessary to create an equivalent object. Using a cost approach valuation of company shares determines the costs of creating a similar enterprise that will have similar assets and occupy the same market position. It also takes into account the investor’s reasonable profit;

Comparative approach. It can only be used on the open market, since it is formed from the method of comparing the objects in question with similar objects sold on the market previously. To get the result valuation of company shares With this approach, it is necessary to have information about the prices of past transactions - unfortunately, an emerging market cannot provide the required amount of data for a detailed analysis.

Income approach. Formed on the principle that investors are most interested not in the real value of shares, but in the income and profit that they can bring. It can be assumed that an investor will not buy shares if he learns about a negative forecast for the development of the enterprise.

The company "Active Business Consultations" knows about all the intricacies of the procedure valuation of company shares. We are ready to provide all possible assistance in determining the value of shares - and provide all the information for making the right and confident decisions.

Valuation of common shares

Valuation of common shares is a procedure for establishing the value of shares, dividends on which are part of the enterprise’s profit remaining after settlements with the owners of preferred shares. The main feature of ordinary shares is that although they have the right to vote at a meeting of shareholders, they do not guarantee their owner dividends on them.

For common stock valuations First of all, an in-depth financial, technological and organizational analysis of the current activities, as well as the development prospects of the organization whose ordinary shares are being assessed, is carried out. Carried out on the basis of calculating the value of the company, common stock valuation also implies the use of an integrated approach, using various methods to achieve a more accurate and high-quality result.

The Active Business Consulting company guarantees a high quality assessment, which will be carried out truly independently, in compliance with all standards and regulations.

The purposes for which the valuation of ordinary shares is performed:

To carry out transactions for the purchase and sale of shares;

For enterprise restructuring (division, merger, acquisition);

For additional issue and placement of shares;

To repurchase shares by shareholders;

To attract external investment;

To carry out transactions of exchange, donation and inheritance of shares;

To obtain a loan secured by securities.

Why is valuation of common shares necessary?

Shares are a financial instrument that can provide good profits to its owner. Investors and enterprising people are attracted by the fact that due to business expansion and improvement in financial performance, the value of shares increases - which means that, under a combination of circumstances, you can get a significant profit from previously made investments. Valuation of common shares in this case, it is presented as a procedure capable of determining the current value of a business and shares, as well as making a forecast regarding the profitability of its acquisition.

The basis common stock valuations- this is the determination of the value of a financial instrument capable of generating profit. An increase in dividends and an increase in share price occur only when the company's financial performance improves, the business expands, and the value of its assets increases.

Methodology for valuing ordinary shares

Valuation of common shares is carried out using the dividend discounting model, a method that is based on determining the present value of expected cash flows. When considering methods and methods, Active Business Consulting is based on the reason for which the assessment is being made. For example, for a buyer of ordinary shares, it is important to receive a portion of the enterprise’s profits and income in the future, which is expressed in the form of dividends or benefits provided by the company’s board (sale of products at individual prices). Regarding the seller's side - common stock valuation must take into account the loss of future revenues.

When conducting common stock valuations The following types of cost can be determined:

Nominal cost. It is based on the cost officially announced by the organization. The par value is the main characteristic of shares, by which the approximate value of a given security is determined. The sum of the par value of the outstanding shares represents the authorized capital of the enterprise, of which only 25% are preferred shares. The par value is the same for all ordinary shares;

The market value is determined based on the stock price on the Russian Securities Market. In practice, the market value does not coincide with the nominal value, since a profitable enterprise will have a much higher share price than an organization that is experiencing financial and business problems. Market value is based on the relationship between supply and demand;

The book value is calculated based on the organization's share capital, equal to the totality of all property assets plus the amounts of liabilities and capital contributed by the owners of preferred shares. Valuation of common shares It is impossible to carry out calculations based on their book value in isolation, since the result obtained will be quite approximate. This also happens because in many respects the book value of ordinary shares will depend on the accounting policy of the enterprise, and therefore can only be used as an indicator of the security of shares;

Liquidation value is the price that can be obtained during the liquidation procedure of an enterprise and the sale of its assets at the best prices at auctions and in the shortest possible time after repayment of obligations and payments on preferred shares.

The investment cost is that valuation of ordinary shares, in which the profitability and profitability of the stock are assessed primarily from the point of view of investors.

Valuation of common shares is also carried out using standard methods:

Cost approach - it is based on the fact that the buyer will not pay more than the amount for which a similar object can be created. Thus, valuing ordinary shares using the cost method is calculating the costs of creating a similar joint stock company that has similar assets and occupies a similar position in the market. The investor's reasonable profit is also added to the total costs;

The comparative approach is possible only on the open market, since it is based on a comparison of the ordinary shares in question with similar shares of joint-stock organizations. And therefore it is important that the prices of recent transactions are known, which cannot be done in the absence of sufficient information or in a developing market. This approach is based on the assumption that the seller will not sell his shares cheaper than at the price at which transactions with similar indicators took place recently.

The income method is based on investors' interest in the company, as well as the possibility of making a profit from investing in the ordinary shares in question. It is calculated that the buyer will not invest money in shares if he cannot subsequently make a profit from them.

Valuation of common shares is not carried out by any method in isolation. As a rule, those methods and techniques are selected that give the clearest idea of ​​the actual cost.

The Active Business Consulting company uses only methods for determining share prices that have been proven by experience and many years of practice. By contacting us, you receive only reliable information, which you can subsequently use for your investment or management decisions.

For your information, you will be interested in the information in the Additional information section: , .

The growing modern investment business is impossible without such a procedure as the valuation of enterprise shares. This process is complex and time-consuming, but let's try to consider everything in order. First, let's figure out what securities are and what their role is for modern business.

What are shares

In a broad sense, shares are securities that indicate the contribution of a certain amount of funds to the authorized capital of an enterprise, occupying both a small and a significant part of it, and which, due to the successful activities of a business representative, allow their holder to make a profit.

This type of obligation does not have a clear fixed nominal rate and can change depending on fluctuations in indicators such as supply and demand, therefore market valuation of shares is a fairly popular and useful procedure in the modern market.

It is also worth noting that from the point of view of legal obligations, the holder of a package of share documents has more powers than the owner of several units of such securities. Therefore, it is extremely important to predict their value in the long term, especially when it comes to large business investments.

The need for securities valuation

So, we have found out how important mutual securities are in modern entrepreneurship, and now let’s take a closer look at why we need to calculate their value and why this procedure is needed.

An assessment of the market value of a block of shares is extremely necessary in the following cases:

• when transferring the rights of temporary management of securities to a trustee;
• when receiving bank borrowed funds and accordingly assessing the value of equity capital;
• when acquiring shares in the authorized capital of another business entity;
• when carrying out any procedures including restructuring of an enterprise (change of form of activity, merger, liquidation and acquisition);
• as well as during the procedure for buying and selling securities, which occurs most often.

After carrying out such an operation, the risk of concluding unprofitable deals from the point of view of business investment policy is significantly reduced. Stock valuation is the first step towards being transparent and understanding how the stock market is doing.

From a legislative point of view

In the modern financial market, a situation often arises in which available funds are accumulated by certain business representatives, but the need for investment arises from completely different business entities, which entails an uneven distribution of funds. For this purpose, there is state regulation of the movement of securities to facilitate uninterrupted financial circulation, which is guided by the Law of the Russian Federation “On the Securities Market” No. 93 of April 22, 1996, as well as the Law of the Russian Federation “On Joint Stock Companies” No. 208 of December 26, 1995.

According to these regulations, the valuation of shares is carried out in the cases described above, and is a procedure not only for determining their net value, but also for identifying their position in the modern market. This process is fully guided by legislation at every stage.

Types of securities value

The valuation of shares of a business entity largely depends on their types of value, which differ as follows:

• nominal – represents the ratio between the total value of the authorized capital and the number of issued securities;
• emission value – the price that is established at the time of initial issue;
• balance sheet - determined in the same way as nominal, but at the same time the volume of obligations of the business entity is subtracted from the amount of the authorized capital and is used for reflection in accounting and financial accounting;
• liquidation - not used until the enterprise ceases to carry out its operating activities, represents the amount of the company's assets after the repayment of all liabilities;
• investment - determined by the investor based on many factors and represents a value that would satisfy demand in the stock market;
• calculated – is the result of an analysis based on changes in stock exchange prices;
• market – the real price for which a security is sold on the stock exchange.

Since the last indicator is the most significant in the investment activity of an enterprise, we will dwell on it in more detail.

How is the market value of shares formed?

No matter how paradoxical it may sound, shares for sale are valued only if they have their own market value, which is not inherent in all share documents. Securities endowed with this property, as a rule, are subject to circulation on the stock market on an ongoing basis, and they must have market quotations, which are determined by professional stock market participants. In addition, blocks of such shares participate in real transactions in which independent sellers and buyers are involved in conditions of open information and a competitive environment.

The market value of these securities depends on the following indicators:

• size of the package being evaluated;
• the conditions under which share capital is distributed;
• the presence of a premium (in the case of a control factor of the package) or a discount (if the size of the package is insufficient for control) when purchasing securities.

Approaches to assessment

Valuation of OJSC shares is a rather individual process, so there are several approaches to this procedure:

1. Expensive. It is used if a legal entity acquires securities of an enterprise that is unable to compete with the shareholder and produces similar products. Therefore, in this case, the buyer, as a rule, is not willing to pay much for an equivalent business, hence the cost is determined.
2. Comparative. Based on information about those transactions that were carried out previously with the participation of similar business entities. As a rule, this approach is applied only in the case of securities trading on the open market.
3. Profitable. Based on the buyer’s interest in the profit that he can receive from purchasing a package of securities. Agree, no one is interested in investing in a business that has a negative reputation in a competitive market.

Stock Valuation Methods

The approaches described above are just a general qualification of the types of determining the value of securities. In addition to this classification, there are methods for evaluating shares, which are selected depending on the results of the analysis of the financial activities of the business entity.

Here are the main methods:

• use of a mathematical weighing procedure;
• analysis of the capital market and resulting transactions;
• discounted cash flow method;
• capitalization of income streams;
• value of net current assets.

Stages of stock valuation

An assessment of the market value of shares as a result of using the above approaches and methods should show the final value, which will be the result of this labor-intensive process, and it is divided into the following stages:

1. Determining the target orientation of the assessment procedure and the cost standard that depends on it. In addition, at the first stage, the amount of information that is publicly available and the percentage of securities being assessed are analyzed.
2. The position of a business entity in the market is analyzed taking into account the industry factor, including the prospects for the business direction.
3. At this stage, the appraiser, based on the information received, determines the methodology by which he will work further.
4. The quality and completeness of the information provided is determined, and its sufficiency for further evaluation.
5. Based on the obtained indicators, income forecasts for future periods are made.
6. The assessment specialist makes a conclusion about whether the enterprise is capable of carrying out further economic activities, or whether it is on the verge of liquidation.

As a result, we have complete and comprehensive information not only about the value of the shares, but also about the overall picture of the state of the shareholder’s business.

How to make investments profitable?

Undoubtedly, the valuation of stocks and bonds is an indispensable process in the modern investment market, but purchasing securities correctly also costs a lot. We all understand that this is a risky business, therefore, when investing your funds in someone else’s business, you should also conduct your own, static assessment.

As for risks, they may depend on many factors. For example, the assessment results did not show positive efficiency in a specific investment project. However, this does not mean at all that the rights in this transaction are worthless; you should consider it from the other side - analyze the option characteristics and decide what can be corrected.

In any case, the process of purchasing securities can be divided into stages and monitor how the company will behave in the future in a competitive environment.

Immediate prospects in the field of assessment of the Central Bank

Unfortunately, at the moment, in the modern domestic stock market, stock valuation is far from a coherent process. And alas, this is due to an imperfect regulatory mechanism, which, with some effort, could adequately regulate the relations between participants in the procedure for buying and selling securities.

The realities of modern domestic business are as follows: shareholders continue to falsify the financial results of the enterprise, while artificially changing the prices of securities on the stock market, which does not indicate their real value, but the inability to choose the right marketing policy.

Valuation of shares consists of determining their market value based on expected risks and expected income. At the same time, analysis and evaluation of shares can be carried out for various tasks. The most common case when it is necessary to obtain an expert assessment is resolving issues related to inheritance rights. Next, we’ll figure out how to evaluate the value of shares, who can evaluate shares, and what documents will be required to calculate all the necessary stock valuation indicators.

Who can value shares? How much does the assessment service cost?

Valuation of shares can be carried out by legal entities (companies) or individuals (appraisers) who have the appropriate licenses or certificate to carry out valuation activities. In addition, the requirements for an appraiser are the need to be a member of one of the Self-Regulatory Organizations of Appraisers and mandatory liability insurance.

To determine how much a stock valuation costs, it is necessary to take into account that the cost of valuation work will depend on:

• the purpose of the assessment;
• completeness and accuracy of the provided source data;
• complexity of work;
• industry to which the issuing company belongs.

What documents need to be prepared?

The specific list of documents for stock valuation depends on whether the securities being valued are quoted or not.

For securities that are quoted on an exchange, you must provide:

• an extract from the register of shareholders of the company with information about the holders and the number of shares they own;
• a certificate of the book value of securities if the owner is a legal entity.

For unquoted securities, in addition to the documents listed above, the following must be provided to the appraisal company:

• certificate of state registration of joint stock company (JSC);
• documents confirming registration with the tax authorities;
• information on state registration of the issue of shares;
• constituent documents;
• report on the results of the issue;
• documents containing information about the types of activities of the enterprise, organizational structure, number of employees;
• balance sheets and income statements for the last several reporting periods;
• detailed information on the composition of accounts receivable;
• detailing of balance sheet asset indicators.

Where can I order an assessment?

If you are looking for where to value shares for a notary, we recommend using the services of experts from the independent appraisal company Uphill (http://www.uphill.ru). Valuation of shares is one of the company's activities and is carried out taking into account the size of the package of securities, their liquidity, stock exchange quotations, as well as the level of control over the enterprise that provides the evaluated package of shares to the holder.

An independent assessment is carried out using modern methods and, in addition to calculating the share of the net assets of a package of securities, takes into account the complexity of the subsequent sale of the package being valued.

By contacting Uphill, you receive professional consulting support, prompt preparation of expert reports, and the opportunity to order a free preliminary express assessment.

What are the features of stock valuation for inheritance? How to carry out a market assessment of stock returns? Where can I get a stock valuation done inexpensively for a notary?

At first glance, to an ordinary person, all this talk about stocks may not seem particularly necessary or interesting. We are not some kind of oligarchs! I dare to assure you that this is a mistaken opinion.

After all, your well-being and financial freedom depend on how well you understand financial instruments, one of which is stocks. What if, for example, your grandmother left you an inheritance in shares?! Then knowledge on this issue will definitely come in handy!

Convinced?! Then, let's begin!

1. What is stock valuation and when might it be needed?

I immediately propose to define the concept of “action”.

Promotion- this is a type of security, in other words, a document that determines your right to a share of the income or property of the enterprise that issued these same shares. Moreover, the size of your share is determined based on the type of shares and the quantity that you are fortunate to own.

Now you probably have a reasonable question: “Why do enterprises give the right to a share in them to you and me?” Everything is very simple. As a rule, an enterprise makes a decision on issuing securities if additional money is needed, for example, to expand production or modernize it.

Of course, you can borrow money. There are many banks and they all vied with each other to offer “very favorable lending conditions.” You can also borrow from friends. But all this is not just debt, but debt with interest.

Since childhood, we have heard that “free cheese is only in a mousetrap”! So, in order not to fall into this debt mousetrap, the company issues shares. It's better to allocate a share of future income than to pay hefty interest now.

Moreover, the company does not risk anything, since it retains most of the issued securities for itself (the so-called controlling stake), which means that all strategic decisions are made by the owners of this important stake. When deciding whether or not to buy shares, we ourselves accept responsibility for the expected risks, and therefore, if something happens, we have no one to blame.

This is a procedure for determining the real value of securities by competent organizations or specific specialists.

Very often, shares are valued when registering an inheritance. The amount of state duty paid depends on the estimated value of the inherited shares.

Valuation of shares is also necessary when obtaining a loan, in the case where securities are used as collateral. A similar procedure is also required when making purchase and sale transactions.

Additional material is in the publication "".

2. What are the types of stock prices - 5 main types

Shares have several types of value. Let's take a closer look at each of them.

Type 1. Nominal value

Nominal value is the value calculated by dividing the authorized capital of a joint-stock company by the number of shares issued by this enterprise into circulation.

Example

Let’s assume that the company “Horns and Hooves,” which has an authorized capital (officially confirmed in its balance sheet) of 10 million rubles, has issued 50 thousand shares. By simple arithmetic we get: 10,000,000 rubles. /50,000 pcs. =200 rub.

This is the nominal value of the securities of the Horns and Hooves company.

Important! The very name of the value “nominal” tells us that this type of value is not decisive for ordinary buyers. At par, shares are purchased only by the founders, and then only until the securities are placed on the stock exchange.

For you and me, their market price is more important.

View 2.

Market value is the price at which a stock "trades" on the stock exchange. Its value is not constant and depends on demand, supply and liquidity. The change in the market price is clearly demonstrated by the graph of changes in the market price of Gazprom shares.

The market capitalization (market value) of a particular company depends on the market value of assets.

Type 3. Book value

Book value is determined by dividing a company's "net assets" by the number of shares of that same company.

Example

Let’s say our company “Horns and Hooves” has assets on its balance sheet (administrative buildings, workshops, equipment, vehicles, cash in accounts and on hand, etc.) in the amount of 100 million rubles.

But the same company also has liabilities in the amount of 80 million rubles. (calculations for taxes, wages, debt for materials to suppliers, etc.). In total, the company has 50 thousand shares issued.

This means that if the company suddenly decides to pay off all its obligations using existing cash and selling other liquid assets, it will have “net assets” in the amount of 20 million rubles on its balance sheet after the calculations have been made. And then the book value of one share will be: 20,000,000 rubles / 50,000 pcs. = 400 rub.

Book value is also called book value, since it is at this value that shares are reflected in the company’s balance sheet.

View 4. Liquidation value

Liquidation value is the cost at which settlements with shareholders will be made in the event of liquidation of the joint stock company.

Liquidation value is calculated only after the shareholder company has completely ceased its actual activities.

It is important to remember that the liquidation value of common shares is determined by subtracting the liquidation value of preferred shares from the company's assets remaining for these payments.

Type 5. Investment cost

When talking about investment value, it should not be confused with market value. We have already said that market value is the price at which they are willing to buy it on the stock exchange. But the investment value of securities is their yield and profitability from the investor’s point of view.

An investor, when deciding to invest in certain intangible assets, tries to calculate the benefits of future ownership of these securities, taking into account expected dividends, capital gains of the shareholder company and possible risks.

Read the article on a related topic - “”.

3. How to estimate the value of shares - 7 simple steps

An expert step-by-step guide will help you carry out the assessment procedure correctly.

Step 1. Select an appraisal company

Shares in the modern world have become widespread. Now you can increasingly hear that they are given as gifts or inherited. However, it is very difficult for an uninitiated person to understand all the intricacies of asset valuation. In this case, as always, professionals - appraisal companies specializing in the securities market - will come to the rescue.

Important! Starting from 2006, a license is not required for appraisal activities. However, this does not mean that assessment can be carried out by anyone. Evaluating company must be a member of an SRO (self-regulatory organization of appraisers) and insure its activities against possible risks.

Of course, the law does not prohibit individual appraisers from conducting their activities privately, but it should be remembered that not all organizations accept the reports of such specialists. It is not uncommon for notaries to not accept such appraisal reports. Be careful!

Step 2. Order the service

Step 3. Agree on deadlines

As a rule, the assessment is done in a short time from 1 hour to 4-5 days. The law does not regulate this aspect. The terms are agreed upon by the parties when drawing up the agreement and depend on the type of shares, the completeness of the documents provided, and the availability of information necessary for the assessment.

Step 4. Conclude an agreement

When concluding an appraisal agreement, be careful and take your time. Do not hesitate to ask for documents confirming the authority of the persons signing the agreement. This can save you from unnecessary expenses and litigation.

Step 5. Pay for the service

The service under the appraisal agreement is paid in standard ways: cash or non-cash. The basis for payment by non-cash method will be an invoice for payment. However, sometimes, if the customer is an individual, the company does not issue an invoice, and the service is paid according to the details from the contract.

Step 6. Collect and submit the necessary documents

Without a full package of documents, the result of the process will not be objective.

The table provides a list of the main documents required to evaluate shares as part of their inheritance:

№	Type of document provided	Purpose of provision
1	Passport	Identification
2	Death certificate of the share owner	Confirmation of the right to evaluate
3	Title documents for shares	Determine copyright holder
4	Constituent documents (and their copies)	Getting the information you need
5	Extract from the depository	To determine the number of shares owned by the deceased
6	Additional documents	At the request of the appraiser

The report contains from 20 to 80 sheets. In it, the appraiser expresses his opinion on the value of assets, based on in-depth analysis and calculations. The report is bound, stapled, pages are numbered, signed by an expert, and certified with a seal.

On the website, everyone can receive online advice from professional lawyers. No more than 15 minutes separate you from quality legal assistance 24/7.

Most of these consultations are provided by specialists free of charge. And only in the most difficult cases may a paid consultation be required, which you can also receive remotely on the service.

The company's lawyers will help you prepare any document from a contract to a claim. Make an application, analyze offers from lawyers from all over Russia, choose the most profitable ones and start cooperation.

Uphill is a large consulting company that carries out all types of appraisal work throughout the Russian Federation. Specialists carry out reports not only according to Russian, but also according to international assessment standards. In addition, Uphill experts can easily prepare an assessment report in foreign languages. You will not see old, irrelevant market reviews in the company's reports, only the latest statistics and analytics.

Pleasant “little things” from the Uphill company:

• flexible pricing:
• discounts and bonuses for clients;
• the ability to travel to the assessment site on weekends;
• free delivery of reports to clients;
• assessment times are 2 times lower than the industry average;
• free consultations and express analysis.

You will find more information on the procedures in the special material on our website.

To ensure an objective and complete assessment, follow our expert advice.

Tip 1. Contact trusted companies

When choosing goods and services, many people like to follow the advice of their friends, family and friends. And as practice shows, in most cases this is justified.

It is the experience of friends who have already gone through the securities or real estate procedure that will allow you to contact a trusted company, where the result will not disappoint your expectations.

Tip 2. Analyze reviews of companies

Before choosing an appraisal company, we recommend reading reviews about it. Fortunately, now that the Internet has firmly established itself in all spheres of human life, this is very easy to do.

Just type in a search engine: “Appraisal company NN reviews” and millions of results for every taste are at your disposal. You can narrow your search by selecting a region or even a city.

However, when analyzing reviews of companies, do not forget the folk wisdom: “Trust, but verify.” Gather all your knowledge about the companies you like, weigh everything again and only then make your choice.

Tip 3. Consult with specialists before contacting an appraisal company

To avoid possible inconsistencies when submitting documents for assessment, we recommend that you first consult with specialists.

They will analyze the package of documents you have prepared and, if necessary, help correct errors in a timely manner and tell you which documents are missing. This approach will allow you to save not only time, but also nerves.

You can learn more about the promotions from the video.