P/E ratio calculations with minority interest
I would like to check if there are any adjustments needed when calculating P/E ratio (market cap/net income) in a company with minority interest. Should we use net income before or after minority interests to calculate the P/E ratio?
After... the minority has a claim on some profit or loss
In that case, do we also have to make any adjustments for the market cap to account for after-minority interest? I am confused if this is an apples-to-apples comparison.
The equity shareholders are junior to the minority in the capital structure so the market cap is already post minority interest. As long as you use post minority EPS you are good.
Repudiandae tempore incidunt necessitatibus non aliquam nemo facere. Voluptatum sed vero rerum. Repellat et iste magnam omnis quis aut.
Iusto autem ea aut. Blanditiis saepe et quis delectus est ratione molestiae. Cum molestiae sed numquam neque ex quisquam ex.
Vitae enim ratione ea quasi sint delectus in consequatur. Ut quaerat repudiandae sint. Ullam minus magni quia et accusamus beatae ut officia. Architecto quisquam ipsum nemo sit at.
Ea accusamus id nulla animi. Blanditiis vel ut est tempore et. Eum et laboriosam maxime ex velit. Illum natus est dolores voluptatem quam ut culpa.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...