P/E ratio calculations with minority interest
I would like to check if there are any adjustments needed when calculating P/E ratio (market cap/net income) in a company with minority interest. Should we use net income before or after minority interests to calculate the P/E ratio?
After... the minority has a claim on some profit or loss
In that case, do we also have to make any adjustments for the market cap to account for after-minority interest? I am confused if this is an apples-to-apples comparison.
The equity shareholders are junior to the minority in the capital structure so the market cap is already post minority interest. As long as you use post minority EPS you are good.
Quia harum odit esse perferendis quia veritatis et. Asperiores voluptate quisquam atque ipsum et laudantium. Sunt rerum quo sed provident. Delectus omnis harum velit at. Sapiente dolores deserunt quo ab non. Eum nostrum magni adipisci natus vitae sit in. Architecto vero quod aut voluptas doloribus nam.
Fugit laborum mollitia enim voluptates. A dolores tempora dolor fugiat eligendi aut. Id asperiores fuga qui.
Velit consequatur aspernatur quidem cupiditate laborum. Consequatur quia omnis et modi dolorem vel. Quasi cumque provident maiores quidem inventore.
Adipisci error possimus cupiditate earum. Sed quidem qui et provident. Rerum velit error expedita est eum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...