Minority interest in valuation

Hi.

I'm preparing for an interview with a bb bank, and got some insider info that they will dig deep into minority interest and valuation.

My questions are; 1. When I do a dcf of for instance Google, how do I then handle the minority interest in company X? Is that reflected in the cash flow from Google, or do I have to add something? I understand that I have to add minotity interest to equity value (in addition to +debt-cash) to get to EV, but I'm not sure when I do the DCF. This additional stake should create value somehow, but I don't understand where.

  1. When I use the equity value found on the stock exchange to get to the EV, why do I have to add minority interest, shouldn't that additional value be reflected in the market value?

Thanks!

1 Comments
 

Facere aut porro voluptatum exercitationem nostrum ut. Numquam id ad nulla fugit maxime. Minima quod sequi est vel aut iure rerum nisi. Mollitia velit quia exercitationem iusto qui nostrum.

Career Advancement Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • JPMorgan 01 98.4%
  • Guggenheim Partners 02 97.9%
  • Morgan Stanley 06 97.4%

Overall Employee Satisfaction

November 2026 Investment Banking

  • Moelis & Company No 99.5%
  • Morgan Stanley 02 99.0%
  • Evercore 01 98.4%
  • Banco Santander 02 97.9%
  • BMO Capital Markets 13 97.4%

Professional Growth Opportunities

November 2026 Investment Banking

  • Evercore 01 99.5%
  • Moelis & Company 01 99.0%
  • Morgan Stanley 05 98.4%
  • Goldman Sachs 01 97.9%
  • JPMorgan No 97.4%

Total Avg Compensation

November 2026 Investment Banking

  • Vice President (16) $429
  • Associates (57) $264
  • 3rd+ Year Analyst (8) $210
  • 2nd Year Analyst (28) $184
  • Intern/Summer Associate (16) $161
  • 1st Year Analyst (84) $151
  • Intern/Summer Analyst (76) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
kanon's picture
kanon
99.0
3
BankonBanking's picture
BankonBanking
99.0
4
Secyh62's picture
Secyh62
99.0
5
DrApeman's picture
DrApeman
98.9
6
dosk17's picture
dosk17
98.9
7
GameTheory's picture
GameTheory
98.9
8
CompBanker's picture
CompBanker
98.9
9
Betsy Massar's picture
Betsy Massar
98.9
10
Mimbs's picture
Mimbs
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”