I'm modeling a company's financials. Last year, the company subtracted a loss from a non-controlling interest (company they own a stake in) when calculating EPS. I get that this EPS number is more reflective of the business itself, since it doesn't include the loss from its stake in the other business, but why do we exclude the loss? Shouldn't that loss be factored into EPS, since the company owns the stake? If you assign a multiple and price target to EPS as they calculate it, you're ignoring their stake in the other business!
Thanks so much in advance. I'm right out of school and this is for an ER interview. I studied molecular biology and am teaching myself accounting.