{"id":114928,"date":"2023-09-04t11:55:54","date_gmt":"2023-09-04t15:55:54","guid":{"rendered":"\/\/www.g005e.com\/?p=114928"},"modified":"2024-08-27t17:01:19","modified_gmt":"2024-08-27t21:01:19","slug":"what-earnings-mean-for-a-business-valuation","status":"publish","type":"post","link":"\/\/www.g005e.com\/2023\/09\/04\/what-earnings-mean-for-a-business-valuation\/","title":{"rendered":"what earnings mean for a business valuation"},"content":{"rendered":"

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why ebitda falls short.<\/strong><\/p>\n

by ed mendlowitz<\/i>
\n77 ways to wow!<\/i><\/a><\/p>\n

earnings are not always objective, and valuations apply a multiple to earnings to determine a company\u2019s value. the elements making up a company\u2019s valuation involve determining normalized earnings, a decision whether income taxes would be applied, and the capitalization rate to be used to get the value. there are also other factors, but this post looks at the quality of earnings.<\/p>\n

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it is always about the earnings \u2013 except when it isn\u2019t. there are some situations where a company could be acquired based upon strategic, synergistic or ego considerations, but otherwise, valuation all boils down to a dependence on earnings and the quality of such earnings.
\n read more →<\/a><\/p>\n