Explore the strengths and pitfalls of EBITDA. Understand how it differs from cash flow and its role in assessing a company's ...

EBITDA measures cash flow potential, excluding debt, taxes, and non-cash expenses. To calculate EBITDA, add expenses and subtract gains from net income. Relying only on EBITDA can mislead due to ...

Enterprise value is a common calculation of a company's worth that is more comprehensive than market capitalization. Enterprise value includes a company's debt, thus giving a fuller picture of a ...

In a slightly slowing but still hot RIA M&A landscape, we are seeing an increasing number of private-equity firms favoring ...

Will Kenton is an expert on the economy and investing laws and regulations. He previously held senior editorial roles at Investopedia and Kapitall Wire and holds a MA in Economics from The New School ...

For example, if a company has an EBITDA of $10 million and an EBITDA multiple of 8, its enterprise value is roughly $80 million. It’s a quick way to assess operational efficiency and see if a company ...

EBITDA is a way of evaluating a company’s performance without factoring in financial decisions or the tax environment. The literal meaning of EBITDA is ‘earnings before interest, taxes, depreciation ...

One question that team members at my company, a boutique investment bank that provides merger-and-acquisition and capital-advisory services, have been fielding lately from both current and prospective ...

In Berkshire Hathaway’s annual report to shareholders, Warren Buffett expressed disdain for financial reporting practices that deliberately inflate earnings figures in an attempt to “make the numbers.

Forbes contributors publish independent expert analyses and insights. Carrie Brandon Elliot analyzes international tax issues. Earnings before interest, taxes, depreciation, and amortization is a ...