Minority Interest
The slice of a consolidated subsidiary that the parent company does NOT own (also called noncontrolling interest). When a parent owns, say, 80% of a subsidiary, accounting rules still fold 100% of the subsidiary revenue and EBITDA into the parent statements -- so an enterprise value built on those consolidated numbers includes value that belongs to the other 20% owners. That is why the EV-to-equity bridge SUBTRACTS minority interest: your shareholders do not own that piece. It appears on the balance sheet within equity, as a separate noncontrolling-interest line.
Lessons that use this term
Related terms
Ambiguity Aversion · Anchored Assumption · Asset Beta · Bank ROE Spread · Banker Pitch Deck · Beta
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