How to Apply the TNMM: Arm’s Length Results outside the EBIT-IQR?

When applying the TNMM, it is mostly used to determine the EBIT margin on the basis of the revenue. In that context, the bandwidth of the comparable data is commonly narrowed to determine the IQR. The authors discuss different approaches both for which profit level indicator reflects the functional and risk profile of the tested party best and when narrowing the range both in theory and in an exemplary case study.