The finance ministry is likely to propose to the Cabinet at least five different methods, including relative peer review and discounted cash flow, for valuation of over a dozen PSUs across sectors identified for strategic stake sale. With privatisation of PSUs being considered after a gap of over 12 years, the ministry feels that valuation of equity becomes important in the case of strategic sale of companies that are not listed or in cases where capital markets may not fully reflect the intrinsic worth of a share disinvested earlier.

Source - http://economictimes.indiatimes.com