medium · Investment Banking implied-share-price

In a consolidated balance sheet, why is 'Noncontrolling Interest' (NCI) added in the bridge from Equity Value to Enterprise Value?

  1. To account for the parent firm's share of consolidated debt
  2. Because NCI functions like a cash equivalent asset held on the balance sheet
  3. To reduce the Enterprise Value calculated for the firm in the bridge
  4. To match the 100% consolidation of subsidiary financials in EBITDA

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