Reply To: The impacts of Covid on current earnings


Michael Hubsmith

At my firm, we have adopted the philosophy that COVID’s impact on revenue and EBITDA are a Force Majeure or an act of God or war. Like a hurricane, it is a one-time impact on business results. The period of time that this Force Majeure impacted varies by industry (and company) so we substitute historical financial results for the same period in an attempt to normalize results for business valuation purposes.

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