"Fair Value of shares is in fact not fair but a compromise effort for bringing the parties to an agreement, just like sudden death in Hockey or Football". Justify with your views.

Valuation is a complex task that requires several inputs not only tangible but also intangible data. There cannot be any method or formula to calculate fair value though it is possible to calculate book value, market value averaging quoted prices for certain period. However, efforts are made to ascertain fair value just like extension of play time in Hockey or Football in case of tie even in extra time. Resort to such valuation is done in case market value is independent of its profitability. Dividing the aggregate of values obtained through net assets method and yield method is the process to arrive at fair value. In another way the following well-known methods are applied to get fair value: The manageable profits basis method or the earning per share method; The net worth method or the break-up value method; and The market value method. In nutshell, the methods most suitable to arrive at a reasonably fair conclusion is attempted.