EBITDA Analysis Definition & Application Wiki

EBITDA Analysis Definition & Application Wiki

Last Updated by WikiWealth

EBITDA Multiple Data

EBITDA Margin Data

Short Definition

Earnings Before Interest Taxes Depreciation and Amortization

Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.

EBITDA = Operating Revenue – Operating Expenses + Other Revenue

Importance

The lower the ratio the better. This is a great comparison tool between similar companies to see which company might have the best potential. It's also the marquee ratio used by hedge funds and private equity companies.

Long Definition

See Dictionary Terms

Source: http://en.wikipedia.org/wiki/Ebitda