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:

Temperamental Traits

Inborn personality characteristics that affect how individuals react to the world around them, including aspects such as mood, activity level, and emotional reactivity.

Responsivity

The quality of being responsive or reactive to stimuli or signals.

Visible Manifestations

Observable or tangible expressions or indications of an underlying factor or condition.

Erikson

A psychologist known for his theory on psychosocial development which outlines eight stages that individuals go through from infancy to adulthood, each with its own unique challenges.