# What is a Quality of Earnings (QoE) analysis, and how does it impact valuation?

**URL:** https://growthoperators.com/faq/what-is-a-quality-of-earnings-qoe-analysis-and-how-does-it-impact-valuation/
**Author:** Growth Operators
**Published:** February 19, 2025

> A Quality of Earnings (QoE) analysis provides an in-depth look at a company’s true earnings by adjusting for non-recurring, unusual, or discretionary expenses. This ensures that buyers see an accurate representation of sustainable earnings, which directly influences valuation. A well-executed...

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A Quality of Earnings (QoE) analysis provides an in-depth look at a company’s true earnings by adjusting for non-recurring, unusual, or discretionary expenses. This ensures that buyers see an accurate representation of sustainable earnings, which directly influences valuation. A well-executed QoE analysis enhances credibility with buyers, reduces surprises during due diligence, and strengthens negotiation power.