What Number Do I Multiply? EBIT, EBITDA, SDE???
Feb 02, 2022•17 min
Episode description
Youtube viewer Canucklehead wants to know which number to multiply and when.
Great question.
One of the biggest problems in business valuation is when people confuse valuation factors.
Apply a 3X EBITDA factor to SDE and you’ll overpay for the business.
But are these hard and fast rules… or just guidelines?
In this week’s video, I discuss when the different cash flow levels made sense and why, in the end, you need to be thinking beyond just math.
Watch this week’s video here: https://youtu.be/Va5USDqv3-A
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