EBITDA

"Earnings Before Interest, Taxes, Depreciation and Amortization": A measure of cash flow calculated as: Revenue - Expenses (excluding tax, interest, depreciation and amortization). EBITDA looks at the cash flow of a company. By not including interest, taxes, depreciation and amortization, we can clearly see the amount of money a company brings in. This is especially useful when one company is considering a takeover of another because the EBITDA would cover any loan payments needed to finance the takeover.

Learn More About EBITDA

For more information on this topic, try one of the following options:

• View other documents that reference EBITDA.
• Browse The Encyclopedia of Private Equity and Venture Capital.

Data & Analytics about EBITDA

Both buy-side and sell-side professionals use the Portfolio Company Analysis Tool to drastically reduce the time it takes to analyze an investment or financing event and model related exit scenarios. The system produces a wide range of tabular and graphical outputs that explain the precise impact of valuation and deal terms on investment returns. The Valuation & Deal Term Database provides more financial data points than any other information source for institutionally backed, high growth companies, including "click through" access to source documents on which our analysis is based.