Free Business Valuation
Calculator for India

Projects future free cash flows and discounts them to present value using WACC. The gold standard for investment-grade valuation. Required for FEMA pricing under RBI guidelines.

Fair market value based on book value of assets minus liabilities. Prescribed under Rule 11UA of Income Tax Rules for valuation of unquoted equity shares for transfer tax purposes.

Values the business at a multiple of EBITDA based on comparable industry transactions. Uses BSE sector multiples as benchmark. Most common for mature profitable businesses.

Values based on revenue when EBITDA is negative or not meaningful. Common for early-stage startups, SaaS businesses, and high-growth companies with thin margins.

Values based on earnings per share multiplied by industry P/E ratio from comparable listed companies. Best for businesses with stable earnings.

Assigns value across 5 qualitative factors: idea quality, prototype, team, strategic relationships, and product rollout/sales. Best for pre-revenue startups without financial history.

Avoid gift tax — prove the transfer price is at or above FMV calculated per Rule 11UA. Defensible valuation report.

Price shares at fair value for foreign investment under FEMA pricing guidelines. Required by AD bank before remittance.

Calculate pre-money and post-money valuation for seed, Series A, or angel investment rounds. DCF + revenue multiple comparison.

Get multiple valuation approaches for negotiation. EBITDA multiples, DCF, and NAV give a valuation range for deal structuring.

Determine fair market value per share for ESOP grants and exercises — avoids perquisite tax disputes for employees.

Provide court-ready valuation for shareholder disputes, divorce proceedings, and partition suits involving business interests.

Which valuation method should I use for share transfer in India?

For income tax purposes (Section 56(2)(x) and Rule 11UA), use the Net Asset Value (NAV/book value) method. The formula is: FMV per share = (A + B + C + D – L) × PV ÷ PE. For FEMA compliance (foreign investment), use the DCF method certified by a SEBI-registered merchant banker or practicing CA. ComplianceSearch.in calculates both automatically.

What is Rule 11UA valuation?

Rule 11UA of Income Tax Rules, 1962 prescribes the method for calculating fair market value of unquoted equity shares. The book value method considers all assets at book value (excluding certain items) minus all liabilities. If consideration received is below FMV, the difference is taxable as 'income from other sources' in the hands of the buyer.

Is a chartered accountant required for business valuation in India?

For regulatory purposes: FEMA valuation requires a SEBI-registered Merchant Banker. For income tax purposes, Rule 11UA allows self-calculation. For court proceedings, a registered valuer under IBBI is required. This tool helps you calculate and understand the valuation — get it certified by the appropriate professional based on your use case.

What is the WACC used in the DCF method?

WACC (Weighted Average Cost of Capital) is the blended cost of equity and debt. For Indian companies, it typically ranges from 12% to 22% depending on the sector, size, and risk profile. This tool suggests an appropriate WACC range based on your inputs, and you can override with your own rate.

Can I use this tool for startup valuation?

Yes. For pre-revenue startups, use the Berkus method. For startups with revenue but no profit, use the Revenue Multiple method. For startups projecting profitability in 3-5 years, use DCF. The tool runs all applicable methods simultaneously so you can compare the range.