You're here:  Home --> Dictionary --> E --> EBITDA

EBIT
Income Statement
10-k
GAAP

EBITDA
Term category: Finance/Accounting
In 10 words or less:  EBITDA stands for "earnings before interest, taxes, depreciation, and amortization"

Definition: EBITDA is a rough approximation for cash flow and it is calculated as revenues - expenses (excluding taxes, interest, depreciation, and amortization).

StockJargon Advice: EBITDA is very important for investment bankers because transactions are often priced as a multiple of EBITDA.  However, it's important to realize that this is a non-GAAP number, which means everyone calculates it different.

Related Articles

Corporate Earnings
Learn how companies report their earnings and how to use this information to decide what stocks to invest in.

How to Read an Annual Report
This brief page guides you through how to read a company's annual report.

Beginner's Guide to Financial Statements
The SEC has put this page together to help investor's navigate the various financial statements.

Related Books

The Interpretation of Financial Statements by Benjamin Graham
How to Use Financial Statements by James Bandler
How to Read a Financial Report by John A. Tracy
Finance for Non-financial Managers by Gene Siciliano

# -A - B - C - D - E - F - G - H - I - J - K - L - M - N - O - P - Q - R - S - T - U - V - W - X - Y - Z