Glossary - EBITDA

Description

Earnings Before Interest, Tax, Depreciation and Amortisation. A widely used measure of a business's underlying profitability, commonly used as the basis for valuation multiples in mergers and acquisitions.

Alternate Names

  • Earnings before interest and tax
  • Business profitability measure
  • EBIT
  • Adjusted EBITDA
  • Operating profit proxy