Fundamentals & valuation
What is EBITDA?
Hinglish mein padhein: EBITDA kya hota hai?
EBITDA is earnings before interest, tax, depreciation and amortisation — a rough measure of operating profit from the core business.
EBITDA margin (EBITDA ÷ revenue) helps compare operating efficiency between companies.
It ignores capital spending and debt costs, so a strong EBITDA does not always mean strong cash flow.
Related terms
- Net profitNet profit (profit after tax) is what is left from revenue after all expenses, interest, depreciation and taxes.
- ROCE (Return on capital employed)ROCE measures operating profit (EBIT) as a percentage of all capital used in the business — equity plus debt.
- Free cash flowFree cash flow is operating cash flow minus capital expenditure — the cash a business generates after investing to maintain and grow.