Glossary
With over 200 terms in both English and French, our M&A Dictionary is designed to help you better understand the key words and concepts related to the sale oe purchase of a business in Canada.
« Back to Glossary Index
Weighted Average Discretionary Earnings (WADE)
« Back to Glossary IndexCategory: Business Valuation
Weighted Average Discretionary Earnings (WADE) is a financial metric used to evaluate a business’s performance. It involves calculating the average discretionary earnings over a specific period, assigning weights to each period based on their relevance. Discretionary earnings represent the company’s net income adjusted for non-operational and discretionary items. WADE provides a more nuanced view by considering fluctuations in earnings over time. This metric is valuable for assessing the sustainable earning capacity of a business, aiding potential buyers in making informed decisions and offering a comprehensive perspective on the company’s financial performance throughout the evaluated timeframe.
« Back to Glossary IndexAcronym:
WADE
French Translation: