Tie-Break Rule
Published on
Overview
The Tie-Break Rule applies when two comparable properties in an A-B-C comparison receive identical weighted-score sums.
Borrowing from tennis and the chess concept of the highest tie-breaker score, an additional criterion determines the winner.
Application in CMA Analysis
When two properties (A and B) share the same composite score, the tie-break selects the property with the higher modeled EBITDA (pre-tax profit) in AED. This ensures a clear ranking even when primary weighted criteria yield a draw.
Benefits
- Provides a fail-safe for non-zero probability of tied scores
- Guarantees uninterrupted CMA output under all market conditions
- Maintains service reliability when integrated with Smart Indexes data infrastructure
EBITDA as an Additional Criterion
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EBITDA as a Financial Tie-Breaker
Choosing the property with the higher projected EBITDA makes sense when all other factors are equal, investors naturally seek to maximize pre-tax returns.
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Applicability to the UAE Market
Since EBITDA is calculated in AED, it maintains consistency and clarity for both local and international investors.
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Algorithm Reliability
This fail-safe rule ensures the CMA algorithm never stalls on identical scores, providing uninterrupted service.
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Simplicity & Transparency:
The rule is straightforward— "if tied, pick the higher EBITDA", which boosts user trust and understanding.