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:

Interest in Land

Legal rights or investments in real estate that involve ownership or other financial claims on the property.

Verbal Evidence

Evidence presented in the form of words, spoken or written, as opposed to physical evidence or demonstrations, used in legal proceedings.

Statute of Frauds

A legal principle that requires certain types of contracts to be in writing in order to be enforceable.

Illegal

Actions or conduct that the law forbids and for which there are punitive consequences.