Skip to content
G·01
← All guides
valuationmethodologyintegrityfilings

Faulty years are dropped, never silently fixed.

Misano

Extraction from filings can invent impossible years — a decimal comma misread as a thousands separator, or a units label ignored. Before multiples run, every financial series passes a deterministic integrity gate that drops those years instead of quietly rewriting them.

What the gate does

  • A year where EBITDA > revenue is excluded from the calculation.
  • The year is not silently fixed or clamped into a plausible range.
  • Excluded years are reported as a provisional data signal.
  • The check is deterministic: same inputs → same result.

Why it usually fires

  • Decimal-comma misread — "24.45" parsed as "244.5" (or the reverse trap on Czech filings).
  • Units mismatch — figures labeled "v tisících Kč" / in thousands CZK treated as full crowns.
  • Rarely a legitimate one-off income item — Misano does not verify that case; it still drops the year.

Related guards (not the same gate)

  • Margins > 100% from faulty extraction are dropped by a central guard, not clamped.
  • Staleness soft/hard gates and the no-EBITDA-carry-forward rule are age and latest-year rules — covered at misano.ai/guides/stale-filings-cannot-make-todays-headline.
  • Currency conversion to CZK happens before the engine; integrity runs on the series the engine actually uses.

Where this sits

  • Runs on the input series before source and method cascades pick a multiple.
  • Part of how-we-value-companies-at-scale §1 integrity — this guide expands the gate in plain language (misano.ai/guides/how-we-value-companies-at-scale).
  • Downstream cascades still apply: custom → niche → NACE (misano.ai/guides/custom-then-niche-then-nace) and the triangulated value band (misano.ai/guides/value-band-is-triangulated).

What this is not

  • Not a staleness gate — age of the filing is a separate check.
  • Not silently fixing OCR or extraction errors into a "corrected" EBITDA.
  • Not a rewrite of the full methodology essay — only §1 integrity, focused.

Get started at https://app.misano.ai/login. From €39/month billed annually, 14-day money-back, no sales call. Product path: misano.ai/scout.

See also: misano.ai/guides/stale-filings-cannot-make-todays-headline, misano.ai/guides/how-we-value-companies-at-scale, misano.ai/guides/custom-then-niche-then-nace, and misano.ai/guides/value-band-is-triangulated.

Frequently asked

01

What triggers the integrity gate?

A year in the financial series where EBITDA exceeds revenue. That year fails a deterministic consistency check and is excluded.

02

What happens to the excluded year?

It is dropped from the calculation and reported as a provisional data signal — not rewritten into a plausible EBITDA or revenue.

03

How does this differ from staleness gates?

Staleness is about filing age (soft >2y, hard >4y) and never carrying EBITDA forward from an older year. Integrity is about impossible within-year relationships (EBITDA > revenue), independent of age.

04

Can Misano invent a corrected EBITDA for that year?

No. The gate excludes the year; it does not invent a fixed figure. Even when the cause might be a legitimate one-off, Misano does not verify that case — the year still drops.

See also: the full valuation-multiples benchmark at misano.ai/guides/multiples.