Why SDE Matters? Seller’s Discretionary Earnings, is a key financial metric used to evaluate the financial health and profitability of a small to medium-sized business. Seller’s Discretionary Earnings, is a key financial metric used to evaluate the financial health and profitability of a small to medium-sized business. It's crucial when selling a business because it provides potential buyers with a clear picture of the company's true earnings power, taking into account the