Minority Interest

When a company owns more than 50% of a subsidiary but less than 100%, accounting rules force it to consolidate 100% of that subsidiary's revenue and profit into its own statements — minority interest, formally non-controlling interest (NCI), is the slice of those consolidated results that actually belongs to the subsidiary's outside shareholders.

It shows up in two places. On the income statement, a line near the bottom subtracts "net income attributable to noncontrolling interests" so the parent's shareholders only claim their share. On the balance sheet, NCI sits inside total equity as the outsiders' stake in the consolidated assets.

Valuation is where it bites. Enterprise value adds minority interest back, because EV is built on consolidated EBITDA that includes 100% of the subsidiary — skip the add-back and the EV/EBITDA multiple compares a partial claim against full earnings.