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EBITDA Calculator
Earnings before Interest, Tax, Depreciation & Amortization.
Enter values to see your result
Frequently asked questions
Why is EBITDA popular?
Compares operating performance across companies regardless of capital structure or tax jurisdiction. Also approximates cash generation (excl. capex + working capital).
EBITDA vs Cash Flow?
EBITDA is an approximation. Real cash flow also needs working capital changes and capex subtracted. Careful: EBITDA can be "inflated profit" illusion.
EV/EBITDA multiple?
Common valuation metric. EV = market cap + debt - cash. EV/EBITDA: large-cap 8-15x, high-growth 15-30x, cyclicals 5-10x.
Criticism of EBITDA?
Buffett: "EBITDA is just P&L without the expenses people don't want to talk about". Ignores real costs of capital and asset wear.