Title: How Carol, a 68-Year-Old Widow, Could Generate an Extra $18,000 Annually by Iden... Tagline: How Carol, a 68-Year-Old Widow, Could Generate an Extra $18,000 Annually by Identifying Undervalued Businesses in Her Traditional IRA Problem: Carol recently inherited a $1.8 million Traditional IRA from her late husband. Now 68 and retired, she's looking for ways to maximize her income from the IRA while maintaining a relatively conservative investment strategy. Her financial advisor suggests diversifying into publicly traded companies with strong cash flow, but Carol is concerned about overpaying for these assets. She's particularly interested in smaller, established businesses with consistent earnings. How can she quickly assess if a company's market valuation (Enterprise Value) is reasonable compared to its earnings (EBITDA), thus potentially uncovering undervalued opportunities within her IRA? Solution: By utilizing the EBITDA Multiple Calculator, Carol can quickly screen potential investment opportunities within her Traditional IRA. For instance, if Carol identifies a company with an Enterprise Value of $50 million and an EBITDA of $5 million, the calculator reveals an EV/EBITDA multiple of 10. Comparing this multiple to industry averages or similar companies can help determine if the company is undervalued. Investing in businesses with lower-than-average EV/EBITDA multiples, relative to their peers, can position Carol to increase her dividend income and realize potential capital appreciation, all within the tax-advantaged structure of her Traditional IRA. ROI: If Carol invests $200,000 of her IRA into companies with identified low EV/EBITDA multiples (suggesting undervaluation), and these companies outperform their peers by even a modest 9% annually (due to the initial undervaluation being recognized by the market), she could see an additional $18,000 in annual growth within her IRA ($200,000 * 0.09 = $18,000). This significantly boosts her retirement income without substantially increasing her risk profile, because these undervalued companies were screened with a keen eye on EBITDA which is a key indicator of profitability. Description: Uncover potentially undervalued businesses in Carol's IRA using the EBITDA Multiple Calculator to potentially increase her retirement income and portfolio value. Determine if a potential investment's enterprise value aligns with its earnings potential. Category: Client Service