SHAREHOLDER EQUITY — VALUING YOUR COMPANY

EBITDA does not replace true earnings and too much emphasis on EBITDA can be a mistake. However, it has the most applicability to capital-intensive industries, such as printing.

To give you a feel for EBITDA, Chart 2 presents an illustration of the EBITDA of the PIA/GATF Ratios for all participants and the profit leaders assuming companies with $10,000,000 in sales.