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  • Am I understanding EBITA correctly?

    updated 6 days, 6 hours ago 0 Member · 1 Post
  • Margaret

    Member
    August 6, 2022 at 9:08 am

    I’m trying to figure out what my business is valued at. I know that’s normally calculated off the EBITA. But I’m not sure how that applies to me. ​ My business is debt free. I use credit cards but they are paid off in full every month, so no interest to speak of. I have never taken a business loan or borrowed money in any other capacity. I do have a line of credit, but it has never been used. I also don’t really have any assets to speak of beyond some software I coded myself to help run the business. So there is nothing to depreciate as there are no real tangible assets. I also don’t think amortization applies as the intangible assets I have (I.E. Software I created) did not cost me anything except my own time. ​ So my question is this. If my business is debt-free and asset free, is our EBITA really just Net Income without Taxes taken out? – by /hq/TDW2405 – –

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