Maintainable Earnings

The sustainable, forward-looking earnings base a buyer is willing to apply its multiple to, after stripping out cyclicality, one-offs, and customer concentration risk.

Buyer Example

A Chennai auto-ancillary supplier shows volatile EBITDA over three years (₹4 Cr, ₹9 Cr, ₹5 Cr) driven by one large OEM order spike. Buyer anchors maintainable earnings at the ₹4.5 Cr weighted average rather than the ₹9 Cr peak, applying its valuation multiple to the lower, defensible base.