MF Case study: Accounting NCI/Investment assocaites
Just came across an interesting accounting case study incl. NCI/minority and treatment of investment associates for EV/EqV metrics
- Consolidated : 130m (o/w EBITDA generated from minority shareholders having 49%)
- Associate investments income: 10m
- : 5m
- : 66.5m (already deduction of minority interest).
- Associates: 100m
- equity attributable to minority shareholders:: 60m
Case study is asking: calculating relevant valuation multiple for NCI + associates using BV on B/S.
Would it be:
- Associates: 100/10=10x
- NCI: 60/5=12x?
And for the EV/EqV bridge: deduct the associate investment of 10m (form of cash/non-core?) and add-up and NCI (BV) of 60m to the bridge?
EV/EBITDA would be: EV (incl. 60m NCI, deduct 100m) / 130m
P/E : (share price x option) / 66.5m -> no deduction needed as NI has been already adjusted above
What about the 13m EBITDA , bit confused here.