Best Financial Advisors in Columbia, SC

EBITDA stands for Earnings Before Interest, Taxes, Depreciation, and Amortization. It's useful for measuring economic profits and commonly used as the foundation of business valuation. But on its own it just communicates relative value, not necessarily the value your specific business. It's a guideline – not a rule. It's really important that owners know the "standard valuation formulas" common in their industry – and how to show contrast between their business and the "going rate" for similarly modeled companies.