Minority discount

The other side of a control premium. A stake that cannot direct the business is worth less per share than one that can.

If control commands a 26.1% premium, the corresponding minority discount is 20.7%, since the two are the same gap measured from opposite ends.

The discount is relevant in private company valuation, in family settlements, and in valuing an unlisted stake held inside a listed group. It rarely applies to an ordinary listed share, because the quoted price is already a minority price.

Which end you measure from changes the number. Say which.