Hi. Is there any expert here who can give me some answers? I hold shares in my uncle's company, which is about to close down. Now my question is what they are worth. How should you calculate the value of stock when a business is closing? Are there any ready formulas that can be applied anywhere? Cheers
Hi, I am no expert but I'll try to answer your question. Based on the information you have given, I am assuming that the business will be shut down completely, and not sold - this not being due to bankruptcy. Assuming this, it's the same as it would normally be. As the business is shutting down, you can not predict future earnings, so look at the income to-date and use that to get the value.
