EBITDA adds back depreciation and amortization to EBIT - a proxy for operating cash generation before capex.

Why does EBITDA matter?

It's a popular shortcut for comparing operating performance, especially in deals and valuations.

What is a common mistake with EBITDA?

Throwing around “EBITDA” without the simple meaning.

Learn these first

You'll understand EBITDA much faster if you learn these first.

Lesson60 seconds

A rough look at cash-like profit from operations before big non-cash charges.

Step 1 of 9

EBITDA adds back and to - a proxy for operating cash generation before capex.

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