So, based on figures here;
Turnover approx = $600,000
Rental = $138,000 (based on 23% of T/O)
I'm not really understanding 'yield' or how the calculation was made in the above example (sorry for my ignorance). Could you explain; "Thus a turnover of say $250,000 has an EBITDA of say $165,000 and at 12% yield gives a value of about $1,375,000."
I understand the 65% of T/O equates to the EBITDA, but how is the 12% yield figure arrived at? Is there a simple mathematical formula for that? Sorry for my misunderstanding!

(BTW, based on that calculation, the lease holder here is paying WAY too much rent!)