ESOP valuation

ESOP valuation is the process of determining the fair market value of a company's shares held in an Employee Stock Ownership Plan (ESOP). It considers factors such as the company's financial performance, assets, earnings, industry position, and market conditions. This valuation ensures that employees receive a fair price when buying or selling shares, and it complies with legal and tax requirements. Essentially, it’s an independent assessment that reflects what the company or its shares are worth at a specific point in time, helping both the company and employees understand the value of their ownership stake.