The stock valuation of a private company is required for an initial public offering (IPO), the issuance of convertible bonds and bonds with stock warrants, mergers and acquisitions (M&A),the exchange of private companies' stock, and the valuation of private companies' stock owned by public companies. The stock valuation of a private company sometimes leads to a social dispute since it may cause unfair wealth transfer and distort the distribution of resources. The process of applying valuation models requires the estimation of future input variables such as dividends, free cash flows, and residual income and a discount rate, which can be arbitrary depending on stakeholders' interests. This paper analyzes valuations models, their advantages and disadvantages, and the key factors that may provoke controversy, using Seoul Central District Court's ruling on the case of Samsung Everland's convertible bond sales which compares various valuation methods in order to find fair value of Samsung Everland's stock. A correct understanding of the valuation methods and their critical points is warranted for the prevention of unfair wealth transfer in the prospective M&As with private companies and for right investment decisions in the equity security analysis of private companies.