Fundamental Analysis
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization — a measure of core operating profitability.
EBITDA strips out financing decisions (interest), tax jurisdiction effects, and non-cash accounting charges (depreciation and amortization) to isolate how profitable the core operating business is. It's widely used to compare operating performance across companies with different capital structures or tax situations, and to calculate leverage ratios like Net Debt/EBITDA.
EBITDA is not the same as cash flow or net profit — it deliberately ignores real costs like interest payments and capital expenditure, so it shouldn't be read as 'the money the company actually has.'