Marginal Value

EBITDA – Drawbacks

This is Part III in a 3-part series.  Please read Parts I and II before continuing: EBITDA – Part I  standard formula and income statement adjustments EBITDA – Part II  balance sheet impact There are […]

Marginal Value

EBITDA

EBITDA is an acronym for Earnings Before Interest, Taxes, Depreciation and Amortization.   The value is generally known as operational profit before capital expenditures and tax obligations.   EBITDA is frequently used for estimating value […]

Marginal Value

Fair Market Value

‘One man’s trash is another man’s treasure’ Value at the individual level is strictly personal.  But as more buyers for the same item come into play the price of the item begins to stabilize.  If […]

Marginal Value

Marginal Revenue in Business

The scholarly definition and reality are two different perspectives.  The student is taught that marginal revenue equals the additional dollars generated for an additional single unit of sales.  It is literally taken right down to […]

Marginal Value

Business and Industry Growth

The second most weighted factor in the risk multiplier series for the Discretionary Income Multiplier Formula is business and industry growth.  This factor evaluates the overall change in an industry and in particular the business […]

Marginal Value

Stability of Historical Earnings

No other element of the Multiply Discretionary Income Formula has as much weighted value as the historical earnings of the company.  Every knowledgeable business entrepreneur, accountant, lawyer, broker, you name them; they look for this […]

Marginal Value

The Cost of One Putt

“That was ugly” quipped by brother. “Good thing you’re not a pro, your family would starve” remarks another brother. My playing partner just sneers at me. Another typical round of golf with family and as […]