Add back “discretionary” expenses (like your personal car lease or home office supplies) to your net profit to find your true SDE.
education
education
What is the difference between SDE, OB, EBIT, Net Profit, and EBITDA?
Shea explains that DE/SDE/OB represent the free cash flow available to an owner after adjusting for non-transferable and one-time business expenses, such as personal car payments or hurricane repairs.
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Business Owners and Entrepreneurs Check Out This New Resource
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