Discounts for lack of control and marketability arise in minority stake valuations. Their size must be justified by the valuation method and comparable data.
Source: Uluslararası Değerleme Standartları (UDS)
Related terms
ValuationEstimating the monetary value of a company, share, asset or liability at a specific date and for a specific purpose.Multiples methodEstimating value using ratios of comparable companies' market values, or of prices paid in comparable transactions, to financial indicators.Fairness opinionAn independent expert opinion on whether the consideration proposed in a merger, acquisition or share transfer is fair from a financial point of view.BetaA coefficient measuring the sensitivity of a share's return to changes in the market return, that is, its systematic risk.Break-even pointThe sales volume or amount at which total revenue equals total cost and the business makes neither profit nor loss.Capital asset pricing model (CAPM)A model that calculates the cost of equity from the risk-free rate, beta and the market risk premium.
Last updated: October 31, 2026 · This definition is for general information only.