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.
Multiple Discretionary Income Formula
The multiple discretionary income formula is a formula used to value a small business worth less than $2,000,000. It takes the discretionary income on average for the past three years and multiplies it by a risk factor from zero to three based on 10 differently weighted risk elements.