Earnings Before Interest, Tax, Depreciation & Amortization (EBITDA)

Tolu Updated by Tolu

Earnings before interest, tax, depreciation & amortization (EBITDA)

Before you invest in a company, you might want to know how much they make before interest, tax, depreciation & amortization are deducted. EBITDA shows that the company's earnings are enough to cater for interest on debt and for shareholders too. It's a more transparent way of determining a company's value.

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