How Do You Calculate Cash Flow?

The most appropriate way is to count earnings before interest, tax, depreciation and amatization, which people call ibada. Ebada is used as a proxy for cash flow. In deals under a million dollars of ibeda, what often happens is sellers brokers adds back all of the seller's discretionary earnings. And so they use a term called s d e sellers discrestionary earnings as the arquotes cash flow metric that you then apply a multiple to get the valuation.