What Is EBITDA and Why It Matters in Investment Banking
EBITDA is calculated by adjusting operating income (EBIT) for non-cash items, namely the add-back of depreciation and amortization (D&A). EBITDA is important for business valuation because it provides a standardized measure of operational performance that can be compared across companies regardless of their capital structure, tax situation, or accounting practices. A higher EBITDA implies that […]
