Glossary

EBITDA

A measurement of the cash flow of a company which includes earnings before interest, taxes, depreciation, and amortization.

See Also

Cash flow, EBIT, net income, SDE.

Tips

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. EBITDA is an indicator for gauging a company’s financial performance. It is often used to determine a company’s profitability and to compare the performance of companies with each other. EBITDA does not include the owner’s salary.

Related Resources

EBITDA | Definition, Formula & Example – A Complete Guide

Seller’s Discretionary Earnings (SDE) | Definition & Examples

Should I use SDE or EBITDA to value a business?

Selling Your Business?

Work with an industry leader that gets you results.

We invested over a decade perfecting every step of the process. The result is a method proven to reduce your risk and maximize your price.

View Our Process Now