Why does Chalice hide behind non-conventional Parameters?Why is Chalice using Adjusted EBITDA instead of EBITDA?
https://corporatefinanceinstitute.com/resources/knowledge/valuation/adjusted-ebitda/
Many items that are being removed from EBITDA most likely for the purpose of inflating or manipulating financial results, or those that don’t fairly reflect the economic impact on a business. For example, while stock-based compensation is a non-cash expense (and many analysts add it back), there is an economic impact to shareholders from the dilution they experience on the issuance of additional shares.
What’s Excluded in Adjusted EBITDA? Adjustments usually take place when a business is being valued for mergers and acquisitions (M&A). Some examples of items are that commonly adjusted for include:
- Non-operating income
- Unrealized gains or losses
- None Cash Expenses
- One-time gains or losses
- Share-based compensation (which is a subject of frequent debate)
- Litigation expenses
- Special donations
- Above-market owners’ compensation (private companies)
- Goodwill impairments
- Asset write-downs
- Foreign exchanges gains or losses