EBITDA

EBITDA (Issuer-related) – Refers to a financial measure where the letters stand for “Earnings Before Interest Taxes and Amortization”  The calculations involves a company’s after-tax income and the adding back ofthe previous 12 months of interest, taxes, depreciation, and amortization.  EBITDA is often used to analyze and compare profitability between companies and industries because it eliminates the effects of financing and accounting decisions.  EBITDA is often the basis for determining price in merger & acquisition-related transactions.