EBITDA

Definitions

1. Earnings before interest, taxes, depreciation, and amortization, a financial metric used to approximate operating performance before certain non-operational and accounting effects. It is widely used in company analysis, though often criticized when treated as cash flow.

   In plain English: A financial measure of operating earnings before several accounting and financing items.

   Example: "The acquirer valued the business on an EBITDA multiple rather than top-line growth alone."

Related Terms

• Cost of Goods Sold
• Cost of Revenue
• G&A
• Internal Rate of Return
• Accrued Revenue
• Capital Expenditure
• Operating Expense
• Operating Margin
• Revenue Recognition