Concept · Business and metrics

EBITDA

Also called: earnings before interest taxes depreciation and amortization, adjusted EBITDA

Earnings before interest, taxes, depreciation and amortization. A rough measure of how much money a company's operations make, often used to compare and value established businesses.

For example: A private equity firm offers to buy a profitable services company for several times its yearly EBITDA.

Connects to 4

• Profit Concept
• Private equity Concept
• Valuation Concept
• Gross margin Concept