Why Is EBITDA Multiple Used for Valuation Rather Than Sales

question 19

Essay

Why is EBITDA multiple used for valuation rather than sales or earnings?

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Definitions:

Provisional Dissolution

The temporary termination of a company's legal existence, subject to certain conditions or pending outcomes.

Spain

A country located in southwestern Europe on the Iberian Peninsula, known for its rich history, diverse culture, and significant contributions to art, literature, and global exploration.

Wrongfully Dissolves

The illegal or unauthorized dissolution of a legal entity or partnership.

Damages

Damages are a monetary compensation awarded by a court to a person who has suffered loss or harm due to the unlawful act or omission of another.