Module I· Consolidation & Equity MethodIntermediate
Question
What are non-controlling interests (NCI), and how are they treated?
Answer
NCI represents minority shareholders' claim on a fully consolidated subsidiary. The group includes 100% of EBITDA but does not own 100% of economics.
Deep diveShow more details
NCI is a common EV-to-equity bridge item. If you value 100% consolidated EBITDA, the minority claim must be reflected before arriving at parent equity value.