Business Administration

Tag: Market Comparable Valuation

  • EBITDA – Drawbacks

    EBITDA – Drawbacks

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    by

    David J Hoare MSA
    in

    There are several business financial attributes required for EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) to work well as a basis for the multiple of earnings method (the method used with the Market Comparable Valuation Approach); see Fair Market Value for a better understanding of the three primary business valuation approaches.

  • Fair Market Value

    Fair Market Value

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    by

    David J Hoare MSA
    in

    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 there are hundreds of thousands of buyers, the price reaches a high level of consistency or what is called ‘Fair Market Value’.