Enterprise & Equity Value
You're computing EV for a multiple. Why does it matter whether minority interest is on a book or market basis, and what's typical?
Model answer
Like equity, NCI is ideally added at MARKET (fair) value to be consistent with the market-based equity value in the rest of the bridge. But minority interests are rarely traded, so book/carrying…
The full, human-reviewed answer is in the bank.
Sign up free and Daily 10 serves you 10 questions a day from all 1,500+ — or go Pro for unlimited reps.
More from Enterprise & Equity Value
- What's the difference between enterprise value and equity value?
- Why do you subtract cash when going from equity value to enterprise value?
- Why is enterprise value capital-structure neutral but equity value is not?
- A company issues $100 of new debt and holds the cash on its balance sheet. What happens to EV and equity value?
- Which valuation multiples pair with enterprise value vs. equity value, and why?
- How do you calculate fully diluted shares?