Market Value based Methods

Such methods can be divided into: (i) quoted market value, (ii) Fair market value and (iii) others. They are conceptually superior to the cost method.

Quoted Market Value Method

This is based on market quotations of securities. It is, relevant only to organisations listed on stock exchanges. Moreover, market values available for infrequently traded shares. In addition, if the holdings of VCIs are substantially the realizable value on the market may be considerably lower than the quoted foregoing situations, the market value may not reflect the real true valuation appropriate discount should be applied to the quoted price valuing the approach is better than the cost based approach for evaluation of a venture portfolio.

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