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What Is EBITDA?
Formula
EBITDA adds back interest, taxes, depreciation, and amortization to net income to show operating profitability.
It is widely used to compare companies across industries by removing the effects of financing and accounting decisions.
Common use cases:
- Business valuation
- Comparing company profitability
- Evaluating operating performance
Frequently Asked Questions
Sarah Chen
Financial Analyst, CFA
Sarah is a Chartered Financial Analyst with over 8 years of experience in investment management and financial modeling. She specializes in retirement planning and compound interest calculations.
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