How do you treat minority interests (non-controlling interests) in a DCF?

Consolidated EBITDA and FCF include 100% of the subsidiary, but the equity holders own only the majority stake. Two routes:

• Top-down: EV (on a 100% basis) minus net debt minus minority interests gives the group equity value.
• Bottom-up: reduce the cash flows by the minority share, then discount.

The standard is the top-down method with minorities at market value (or book value as a proxy).

```
NCI mark-to-market = NCI book value × (sector EV/EBITDA) / NCI valuation EBITDA
```

Relevant at groups with historically complex holding structures — often a position that moves the valuation.