The value of a minority is discounted from its pro-data share of the company's Fair Market Value. Economists have not developed an economic model for valuing minority interests. But, any approach or methodology for Minority Interest Valuation should focus on the ownership rights of holders. The courts have long recognized that minority, or non-controlling investors are in an inferior position, and, consequently, the value of their ownership interest may be less than a pro-rata share of the total value of the asset.
