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:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Percentages

A way of expressing numbers as fractions of 100, used to describe proportions.

All-Nighter Narrative

A term not commonly defined in formal contexts, potentially referring to stories or experiences related to staying awake all night, often for study or work.

Crimes Per Capita

A statistical measure expressing the number of crimes reported per unit of population in a given area or period.