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EBITDA

EBITDA defined: EBITDA stands for “Earnings Before Interest, Taxes, Depreciation and Amortization” and is a non-GAAP indicator of a company’s financial performance. EBITDA is frequently used as a measure of a private company’s financial performance, since it is a good way of comparing the performance of different companies, as it removes the effects of financing and other balance-sheet decisions like interest on debt, or depreciation expense.

Above is a definition for “EBITDA” from PrivCo’s Private Company Knowledge Bank, the definitive online and e-book guide to private companies and private company deals.

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