hard · Investment Banking implied-share-price

Which adjustment, if mishandled, most distorts the implied per-share equity value, and what is the correct treatment?

1. Deduct NCI of $120mm from enterprise value before reaching equity value, because the consolidated DCF captures 100% of the subsidiary's cash flows but minority holders own 40% of that value.
2. Add the $300mm convertibles a second time as a fully diluted share-count adjustment, because in-the-money converts always increase shares outstanding under the treasury stock method.
3. Treat the $200mm pension underfunding as a cash-like asset that increases equity value, since an underfunded pension represents future contributions the firm has not yet actually made.
4. Ignore NCI entirely from the equity bridge because minority interest is purely an equity-side accounting item that nets out automatically once basic shares convert to a fully diluted share count.

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