What does EBITDA stand for?

Earnings before interest, taxes, depreciation, and amortization (EBITDA) is a measure of corporate profitability. Analysts and investors use EBITDA to evaluate a company's underlying profits without factoring in financing/accounting decisions or tax environments.

What are the different EBITDA formulas?

The respective EBITDA formulas are: EBITDA is net income (earnings) with interest, taxes, depreciation, and amortization added back. EBITDA can be used to track and compare the underlying profitability of companies regardless of their depreciation assumptions or financing choices.

What is a good EBITDA?

An EBITDA over 10 is considered good. Over the last several years, the EBITDA has ranged between 11 and 14 for the S&P 500. You may also look at other businesses in your industry and their reported EBITDA as a way to see how your company is measuring up.

What is EBITDA multiple?

EBITDA multiple (also referred to as enterprise multiple) is a ratio that compares a company’s total market value ( enterprise value) to EBITDA. This metric is used to determine whether a company is over or undervalued. 1.