Profitability

What is EBITDA?

EBITDA strips out non-cash charges and financing effects to show pure operating performance — earnings before interest, taxes, depreciation, and amortization.

Formula

EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization

How to Interpret

EBITDA is useful for comparing companies across different tax regimes and capital structures. But it ignores real cash costs like capex.

Typical Ranges

Compare EBITDA margins within the same industry, not across sectors.

Learn More in the Academy

Find Stocks Using This Metric

Use the Equiscale Stock Screener to filter Indian stocks by EBITDA.

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