Control/Marketability Discounts/Premia

Can anyone explain whether we add Control or Liquidity discounts/premia only in the case of Market approach or do we do this for the Income Approach also?

I have seen them being added after we conclude the values via multiples, but when we use DCF model I have never seen such discounts/premia being applied…Why is that?

This has been bugging me for some time and I cannot seem to find a clear answer anywhere.

you might apply the DLOM and minority discount to any valuation method.


+1 on @_Oscar’s response. The only thing I would add is that you need to consider the source of the market approach. For example, if you are using public comps which already include the minority discount then make sure you do not apply it again. If you are using transaction (M&A) comps which reflect 100% control you would need to discount these if valuing a minority interest.