Book Value Per Share Non Controlling Interest

This is the value at which you can reasonable expect to sell your holding in the market.

Book value per share non controlling interest. This adjustment lowered kmi s economic book value from 1 6 billion to 8 6 billion. Book value per share represents equity of the firm on per share basis. Calculate fair value of the non controlling interest fair value of the equity.

Kinder morgan kmi which had a total of 10 billion in minority interest liability removed from shareholder value in 2012. 3 1 1 noncontrolling interest in a subsidiary owned by the parent or affiliate of a. Book value per common share or simply book value per share bvps is a method to calculate the per share book value of a company based on common shareholders equity in the company.

Let s say the fair value of non controlling. The similar term minority interest was previously used in standards non controlling interest nci is ownership of a company which does not give the shareholder the control of the company. The book value per share may be used by some investors to determine the equity in a company relative to the market value of the company which is the price of its stock.

This wouldnt be factored in for bvps but you do include non controlling interests in shareholder equity. What is book value per share bvps. Non controlling interest is a percentage of the company owned by shareholders less than 50 and thus have no control over decisions and don t carry voting rights.

As an example if company m has 80 stake in company x then the remaining 20 is the non controlling interest in company x. For example a company that is currently trading for 20 but has a book value of 10 is selling at twice its equity. Book value of equity per share bvps is the ratio of equity available to common shareholders divided by the number of outstanding shares.

A non controlling interest minority interest occurs when an ownership stake is less than 50 of the outstanding shares. This means if the company dissolves the shareholders will receive an amount per share as per book value per share. A non controlling interest is also specifically used in relation to subsidiary companies to refer to the equity interest that is held by outside investors rather than the parent company.