Put simply, 2020 was a "noisy" year for many subject companies valued by our industry; however, beyond 2020, our profession evaluates subject companies going through volatile periods as well as industries that benchmark differently than the general economy frequently. These analyses may require extra analyses to assess appropriate estimations of normalized ongoing levels. Determining appropriate adjustments, margins, earnings, sales levels, etc, can provide to be a more rigorous analysis than otherwise in a mature business within a stable industry.
Understand why there is not one single formula or rule of thumb for estimation of ongoing levels
Evaluate the appropriateness for adjustments in a volatile year and how these analyses must be performed in conjunction with estimating 'ongoing levels'
Determine additional valuation considerations to review and assess