Valuation of shares is an important aspect of corporate accounting, especially in cases of amalgamation, absorption, reconstruction, taxation, and transfer of shares. The value of shares may differ from their face value and market value depending upon the purpose of valuation. Various methods are used to determine the fair value of shares, broadly classified into asset-based methods, yield-based methods, and market-based methods. The Net Asset Value (NAV) Method, also known as the Intrinsic Value Method, is based on the value of the company’s net assets. Under this method, all assets of the company are revalued at their fair market values and all outside liabilities are deducted. The difference represents the net assets available to equity shareholders. The value per share is calculated by dividing net assets by the number of equity shares outstanding. Fictitious assets such as preliminary expenses and accumulated losses are excluded. This method is suitable when the company is asset-rich or in case of liquidation. The Yield Method, also called the Profit Earning Capacity Method, determines the value of shares based on the company’s ability to earn profits. It