How to Calculate Seller Discretionary Earnings Correctly
How to Calculate Seller Discretionary Earnings Correctly Quick Answer Seller Discretionary Earnings (SDE) is calculated by starting with pre-tax income and adding back one owner’s market-rate salary, owner perks, interest expense, taxes, depreciation, amortization, and non-recurring or discretionary expenses that don’t reflect ongoing operations. This normalized measure reveals the true cash available to a single […]