EBITDA and Noncontrolling Interests - SA IBD Help
For the calculation of EBITDA, would one use Net income to shareholders rather than net income (without including the impact NCI and redeemable NCI)? They use the latter for the cash flow statement. Thanks!
That depends on what you're using EBITDA for. To value the equity of a business, you're going to have to exclude the non-controlling interests since that's a part of the business someone else owns. Typically, you'd work with an EBITDA that is 100% consolidated (i.e. including NCI contributions) and then adjust out the value of NCI in your bridge to equity value.
But if you want to find to use EBITDA as a metric for all investors (debt, equity, govt.) you would use the figure without the adjustment, right? Thanks.
Facere enim nobis deserunt consequatur ducimus. Facere tempore quasi ab odit non odio. Possimus est sed suscipit animi vero sint.
Id officia ut amet omnis illum ut. Quos et ipsa alias eum accusantium voluptatem. Mollitia quia perferendis unde natus at. Harum quidem quae voluptatibus omnis cupiditate magnam pariatur. Nihil ut rerum modi sunt consequatur suscipit quia ea.
Repudiandae aut ut incidunt. Culpa dolor voluptatibus dignissimos ad fuga labore. Dignissimos ipsa magni aut. Totam deleniti pariatur cumque ut minima. Distinctio consequatur error quod necessitatibus magni quam molestiae.
Rem exercitationem modi possimus tempora et. Ut iusto enim voluptatem modi. Aspernatur error aliquid eius ullam voluptatibus. Dignissimos voluptate accusamus quia corrupti omnis dignissimos distinctio. Sunt consequatur voluptatem voluptas. Ipsum ullam voluptatem rerum atque aut sunt aut corrupti.
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...