Basic ways of approaching the valuation of non-controlling ownership interests are the following EXCEPT:

The discount approach (top-down), the direct comparison approach, and the bottom-up approach are all recognized, specific methods for valuing non-controlling ownership interests. The "market-based approach" is a general valuation category (like the income or asset approach) typically used to derive a value for the entire enterprise on a controlling, marketable basis. While the result of a market-based approach is often the starting point for the discount approach, it is not, by itself, a specific method for valuing the non-controlling interest in the same way as the other, more granular techniques listed.

A. The discount approach: This is a primary, top-down method that starts with a pro-rata share of the 100% enterprise value and then applies relevant discounts (e.g., DLOC).

B. The direct comparison approach: This is a valid method that uses market data from actual transactions of non-controlling interests in comparable companies to directly value the subject interest.

D. The bottom-up-approach (income approach): This is a valid method that directly values the non-controlling interest by projecting and discounting the specific cash flows or economic benefits expected to accrue to that interest.

1. Pratt, S. P., & Grabowski, R. J. (2008). Cost of Capital: Applications and Examples (3rd ed.). John Wiley & Sons.

Page 371, Chapter 16, "Minority Discounts and Control Premiums": The text explicitly discusses the "top-down" method (discount approach) and the "bottom-up" method as two primary ways to value a minority interest. It also discusses using direct empirical evidence from minority-interest transactions, which aligns with the "direct comparison approach." The market approach is presented as a method to value the overall entity, which is the precursor to the top-down method.

2. Hitchner, J. R. (2017). Financial Valuation: Applications and Models (4th ed.). John Wiley & Sons.

Chapter 11, "Valuation Discounts and Premiums": This chapter details the common methodologies for valuing minority (non-controlling) interests. It describes starting with a control-level value (often derived from the market or income approach) and applying a discount for lack of control. It also discusses valuing the minority interest directly (the bottom-up approach). This framework treats the "market approach" as a source for the initial enterprise value, not as a direct method for the non-controlling stake itself, distinguishing it from the other options.

3. NACVA. (2023). Business Valuations: Fundamentals, Techniques and Theory (FT&T). NACVA Training and Development Center.

Chapter on Valuation of Partial Interests: The official NACVA training materials describe the process of valuing non-controlling interests primarily through the application of discounts (DLOC) to a control-level value or, alternatively, through a direct assessment of the economic benefits to the minority holder (bottom-up). The "Market Approach" is taught as one of the three core approaches to value the entire business, not as a specific technique for a partial interest.