Learn what EBITDA is, how to calculate it, and why it matters for valuation. Explore its benefits, drawbacks, and role in analyzing company performance. 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 means earnings before interest, taxes, depreciation, and amortization. Know its formula, calculations, advantages, and more. EBITDA or Earnings before interest, taxes, depreciation, and amortization is a business valuation metric to assess the financial strength of the organization. Business owners utilize it to compare market performance with their rivals. Moreover, a positive or negative EBITDA explains the effect of the company’s capital structure on its cash flows and bottom line. It displays the financial results of a firm, except capital investments, like equipment, property, and plant. Please note that it ...
