EBITDAR is used to evaluate companies in sectors, which rely heavily on such techniques as Leases, sale-Leasebacks etc. This is often the case of cinema theatres or haulage companies. EBITDAR is relevant when companies with different rental policies are compared. When analysing the Enterprise value derived on the basis of the EBITDAR multiple, it is important to remember that Lease commitments should be treated as Debt.

(See Chapter 32 Capital structure and the theory of perfect capital markets of the Vernimmen)

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