EBITDA
EBITDA is earnings before interest, taxes, depreciation, and amortization — a measure of operating profitability that ignores financing and non-cash charges.
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. Starting from operating profit, it adds back depreciation and amortization (non-cash charges) to approximate the cash a business generates from its core operations, before the effects of how it is financed and taxed.
It is widely used to compare the operating performance of companies with different debt loads, tax rates, and asset bases. But EBITDA is not the same as cash flow and not a formal accounting measure — it deliberately excludes real costs, especially the capital spending needed to keep a business running, which is why critics call it "earnings before the bad stuff."
stocks-llm does not treat EBITDA as free cash flow. Where it uses EBITDA it is inside the EV/EBITDA valuation ratio, shown as delayed data with its as-of date.
See more terms in the stocks-llm glossary.
Informational only — NOT financial advice. This is an educational definition, not a recommendation to buy or sell anything. Metrics on stocks-llm are delayed data and may be missing or stale. Always verify information independently and consult a qualified financial professional before making any investment decision.