EBITDA

EBITDA stands for ‘earnings before interest, taxes, depreciation and amortisation’ and measures operating profit before interest, taxes and depreciation/amortisation. It is regarded as an approximation of operating earning power and is one of the most used reference figures for company valuations (EBITDA multiples).

In M&A processes, the ‘adjusted EBITDA’ — cleaned of special effects and normalisations — is usually applied.