Therefore, because minority holders have little power and no control, a 20% share of a company should be less than 20% of its total value. Conversely, an 80% share should be worth more than 80% of the full value of the company. Majority holders should be prepared to pay a premium for control.
There are three broad approaches to share valuation: 1. Assets-based.
2. Income-based.
3. Cash flow-based.