SHAREHOLDER EQUITY — VALUING YOUR COMPANY

1. What is EBITDA?

2. Your company is worth enterprise value, and enterprise value is computed as a multiple of EBITDA.

3. How does one maximize enterprise value, which obviously increases the value of your company?

EBITDA is an acronym for earnings before interest, taxes, depreciation and amortization. For example, as illustrated in Chart 1, EBITDA is computed by simply adding back to reported earnings—interest, taxes, depreciation and amortization.