Ebitda meaning: EBITDA is a financial metric that measures

EBITDA is a financial metric that measures profitability by excluding non-operating expenses and non-cash costs. Learn how to calculate EBITDA , why it is important, and how it is used for valuation, debt evaluation, and comparative analysis. EBITDA Definition Earnings before interest, taxes, depreciation, and amortization —also called EBITDA —is a record of the amount of money a company generated during a period, before deducting interest costs and taxes, and before taking into account the depreciation and amortization of assets. EBITDA is used to measure mid-sized business earnings. Calculate your EBITDA here, use a multiple to find your company value, and begin selling your business. What does EBITDA mean ? The term stands for ‘earnings before interest, taxes, depreciation and amortisation’. EBITDA is one of the commonly used financial metrics to evaluate a company’s performance. It helps assess the company’s operating performance, which means that it only considers the operating costs to gauge its profitability, without the impact of nonoperating expenses like taxes and interest.