🏢Unlisted Stock Valuation Calculator

Estimate a private company's fair value using net profit, industry P/E, illiquidity discount, and shares outstanding.

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How to Use the Unlisted Stock Valuation Calculator

The comparable P/E method values a private company by multiplying its net profit by the average P/E ratio of similar public companies. Enterprise value = Net Profit × Industry P/E. Since private shares are less liquid than public ones, an illiquidity discount of 20–40% is then applied to reach the final estimate.

For example, a company earning $500,000 with an industry P/E of 18 has a base value of $9,000,000. After a 30% illiquidity discount, the adjusted value is $6,300,000. Divide by total shares to get a per-share fair value. This is a single-method estimate — real transactions depend on growth prospects, deal structure, and negotiation, so use this as a starting reference only.

Frequently Asked Questions

Which net profit figure should I use?

Use the most recent fiscal year's net income for stable businesses. For companies with volatile earnings, average the last 2–3 years. Exclude one-time items (asset sales, litigation proceeds) to reflect normalized profitability.

How do I find comparable public company P/E ratios?

Search for 3–5 public companies with similar business models, size, and growth on Yahoo Finance, Finviz, or Bloomberg. Compute their simple average P/E ratio and use that as your benchmark.

Should I use this for startup valuation?

This P/E method is best suited for profitable businesses. Startups with no earnings are typically valued using revenue multiples (P/S ratio), user metrics, or DCF with projected future earnings. The illiquidity discount still applies.