One of the purposes of calculating EBITDA is to get to a cash flow number which can be compared to others in your industry. It is also a number which a buyer would expect to earn from the company after the sale.
Read MoreBusiness Valuation Purpose: What is Valuation or Evaluation? Why does the company value change depending on the valuation PURPOSE? Are you looking to understand how to value a company?
Read MoreWhat is Fair Market Value? Fair market value as a term has many meanings. As a term in business valuation it has a specific meaning.