Individual Stocks

Price / Earnings Ratios and Other Calculations

What is “EBITDA”?

EBITDA, or Earnings Before Interest, Taxes, Depreciation and Amortization, is similar to EBIT. But it also takes into consideration two important tools that companies use to improve their tax liability and, therefore, their profitability. It is a company’s net income, with the interest charges, depreciation, and amortization added back into the equation.


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