EBITDA: Excluding depreciation and interest.
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Therefore, sometimes valuation using the EBITDA Multiple method should only be used as a reference, as it does not fully reflect the asset management capabilities and the capabilities of the accounting and finance department of a Data Center/Profit Center. Especially for early-stage founders (Pre-Seed, Seed). Almost all accounting departments have nothing, and investments are almost entirely risky without much basis.
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If we only focus on profits and not on cash flow, the company may easily miss all of its issues. EBITDA is not Cashflow. Experienced investors can see through this right away. Especially bosses who have risen from accounting and finance; they will definitely negotiate a lower price.
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