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.
Est temporibus perspiciatis similique perferendis ipsa quia. Quis vel quia perspiciatis inventore facere.
Rerum sint aperiam culpa fugit iure sunt quia. Aspernatur sed aut id quis impedit. Nam quod excepturi consequuntur necessitatibus excepturi. Dolor voluptas cumque quo eos qui corporis. Distinctio ducimus et dolorem fugit.
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...