Marketing or technology-related intangibles foster economic scalability. This increased return on operating profit derives from a higher EBITDA, a key economic and financial margin widely used in firm appraisal that is reflected in the ratio EBITDA / Sales (a sort of “monetary” Return on Sales). Intangibles have a scalable impact on the EBITD(A) if they contribute to boost monetary revenues and/or to decrease monetary OPEX. EBITDA represents the real engine behind value creation and economic-financial growth. EBITDA has an impact on most profitability ratios and market multipliers, ranging from ROIC, ROE, EVA, MVA, the economic profit to Enterprise Value/EBITDA, Price/Book Value, Price/Earnings, etc. This study analyses these links starting from a comprehensive accounting perspective, critically examining the causal relationship according to which intangible investments increase the EBITDA and have a positive impact on both profitability ratios and market multipliers.

https://www.researchgate.net/publication/344376735_THE_SCALABLE_IMPACT_OF_INTANGIBLE_INVESTMENTS_ON_THE_EBITDA-DRIVEN_MARKET_VALUATION

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