There are three basic approaches (asset, income and market) that are used to value companies (both public and private). Within each approach, there are various methodologies that are utilized to determine the value of a company. After the control and marketability characteristics of the ownership interest being valued are taken into account, the results of these valuation methodologies are reconciled to arrive at a concluded value.
This 20-page e-book will help you understand the following components of the valuation of privately-held companies:
Levels of Value
Discounts for Lack of Control and Lack of Marketability
Reconciliation of Values