Journal des affaires et de l'économie

Techniques for Estimating the Value of Control Using Indirect Method Based on Stock Prices

Abstract

Yuriy V Kozyr

This article views the value of control rights when calculating the market value of the various stakes of regular shares, i.e., minority, blocking, controlling and super controlling ones. The approach is based on the technique of determining the value of control rights, which is indirectly calculated as the difference between the results of the market equity value estimated with the techniques taking into account control rights and those estimated with the techniques disregarding control rights (estimating equity capital on the minority level). The author proposes mechanisms for calculating premiums on control and discounts for lack of control reflecting various sets of initial data, including the structure of the company’s whole equity capital.