A financial measure where the letters stand for “Earnings Before Interest, Taxes, Depreciation and Amortization.” The calculations involve a company’s after-tax income and the adding back of the previous 12 months of interest, taxes, depreciation, and amortization. EBITDA is often used to analyze and compare financial performance independent of the Issuer’s capitalization between companies and industries because it eliminates the effects of financing and accounting decisions. EBITDA often is the basis for determining price in merger & acquisition-related transactions. Pertains to debt and equity offerings.
« Back to Glossary IndexEBITDA
by bsmith@carofin.com | Feb 22, 2019
