How to Value Companies Not Listed on Stock Exchange

Private companies lack market prices, have illiquid shares, and are often controlled by founders. Three adjustments: illiquidity discount, control premium, and size premium.

Private EquityIlliquidity DiscountControl PremiumDLOM

Live Result

1,000

ƒ: public_comparable_value * (1 - DLOM) * contr…raw: 1000.00

ƒ(x)

Use variable names from the panel above (e.g. FV, r, n) — or type numbers directly: 10000 / (1 + 0.08)^10

public_comparable_value

Value using public company comparables

public_comparable_value = 1000

DLOM% as decimal

Discount for Lack of Marketability (0–0.40)

DLOM = 0.20

control_adjustment% as decimal

1 + control premium (if buying control) or 1 (minority)

control_adjustment = 1.25

size_premium% as decimal

Additional return required for small company risk

size_premium = 0.03

💡 You can also enter values directly in the formula: 10000 / (1 + 0.08)^10

⬇ Export Calculation

Exports a plain .txt file with your expression, formula, all variable values, result, and educational notes — ready to paste into any report, Word doc, Notion, or Google Docs.

The exported file includes the formula in standard mathematical notation — you can paste it directly into Excel, Google Sheets, or back into FinanceSheep.

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Learn: How to Value Companies Not Listed on Stock Exchange

Special Valuation Cases · Educational Guide

The Core Idea

You want to buy a private bakery business. There's no stock market price to look at. Comparable listed companies trade at 12× EBITDA — but is that the right price? Private companies require special adjustments.

How It Works

Private firm value = comparable public value adjusted for (1) illiquidity, (2) control, and (3) size. DLOM (Discount for Lack of Marketability) = 15–35% for minority stakes. Control premium = 20–40% for buying a controlling stake. Small company size premium = 2–5% extra required return.

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Real-World Example: Public comparable value = $1,000M. Buying a minority stake → apply DLOM 20%: $800M. Buying control (majority) → no DLOM, add control premium 25%: $1,250M. Adjusted for small size (apply higher discount rate): maybe $900–$1,100M depending on stake bought.

How to Value Companies Not Listed on Stock Exchange

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