Hi All -
I am a bit confused as to how to account for Equity Income from Affiliates and NCI when calculating EV / EBITDA multiples. My understanding is that we include Equity Income from Affiliates in EBITDA since your EV should take into account the market value of your equity investment. Similarly, my understanding is that we add NCI to EV since the EBITDA figure consolidated the earnings. Is that correct? If we add NCI to EV, do we ascribe a multiple to NCI; i.e. if NCI is $10mm, do we simply add $10mm to EV or do we apply a multiple (say 6 * 10mm)?
Many thanks
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