Simplest formula for calculating the market value of a share for an unquoted company?

Answer 1

You calculate the earnings per share (EPS) for this private company. And, you multiply this EPS by the P/E (price earnings multiple) for companies in the same industry.

You should probably discount this value by 20% or so because it is private, the stock is illiquid, etc...

Let's take a simple example. You calculate that the earnings per share for your company is $10. Then, using Value Line or other sources you find that the P/E for the industry is 15. Multiplying $10 by 15 you get a value of $150 per share. Then you discount this value by 20%, and you get a value of $120.

Using this method, if another investor were willing to pay you this price for your shares (using the mentioned assumptions), you could assume you got a pretty fair deal.