Enterprise value is a common calculation of a company's worth that is more comprehensive than market capitalization. Enterprise value includes a company's debt, thus giving a fuller picture of a ...

EBITDA stands for ‘earnings before interest, taxes, depreciation and amortisation’. It is calculated by taking away the above figures from a company’s total revenue, to give an idea of the profit made ...

Explore the strengths and pitfalls of EBITDA. Understand how it differs from cash flow and its role in assessing a company's financial health.

For example, if a company has an EBITDA of $10 million and an EBITDA multiple of 8, its enterprise value is roughly $80 million. It’s a quick way to assess operational efficiency and see if a company ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Charlene Rhinehart is a CPA , CFE, chair of ...

If you read the business pages for any length of time, you’re likely to come across a rather clunky acronym: Ebitda. What does it mean, and why does anyone use it? Ebitda is a way of measuring profit ...

EBITDA is an acronym that stands for “earnings before interest, taxes, depreciation, and amortization.” It’s a business metric used to assess a company’s financial health and ability to generate cash.

Heidi Farris is the CEO of ActivTrak, focused on helping organizations use data to understand and optimize the way teams work. In boardrooms across industries, discussions around EBITDA and ...

In Berkshire Hathaway’s annual report to shareholders, Warren Buffett expressed disdain for financial reporting practices that deliberately inflate earnings figures in an attempt to “make the numbers.

EBITDA is a way of evaluating a company’s performance without factoring in financial decisions or the tax environment. The literal meaning of EBITDA is ‘earnings before interest, taxes, depreciation ...