Valuation

See Reference Value for full details on calculating the value of a FairShares Enterprise.

The Valuation of a FairShares Company influences the Fair Price for Investor Shares. The Fair Price controls the amount paid from Surplus for each new Investor Share allocated to Labour and User Shareholders, and also the compensation paid to Investor Shareholders when they transfer ownership of their Investor Shares to other members, mutual associations and societies, co-operatives, charities and community interest companies established to make social investments for employee, social and public benefit.

(N.B. The names of companies and organisations for community benefit vary nation by nation. For example, in the US there are ‘’Non-Profits’’ and ‘’Benefit Corporations’’. In Japan, there are ‘’Specified and Certified Non-Profits’’, ‘’Co-operatives’’ and ‘’Social Responsibility Corporations’’.

It is used to calculate the Member Shares in a FairShares Enterprise based on the level of Surplus.

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Return to the FairShares Glossary.