Why Is the EBITDA Multiple Used for Valuation Rather Than

question 58

Essay

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

---

Definitions:

Expense Ratios

The measure of the cost of managing, operating, or investing in a fund, represented as a fraction of the fund's assets.

Business Broker

A professional who assists in the buying and selling of businesses, helping to connect buyers and sellers and navigate the transaction process.

Real Estate Manager

A professional responsible for overseeing the daily operations of properties, ensuring they are well-maintained and financially viable.

Financial Broker

A professional who serves as an intermediary between a buyer and seller of financial securities, offering investment advice and executing transactions.