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Concept8 min read
EBITDA
Earnings Before Interest, Taxes, Depreciation, and Amortization — the most commonly used profit metric in consulting cases and private equity. It measures a company's operating profitability independent of its capital structure, tax situation, and accounting choices.
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What's inside
- Definition
- Why it matters
- Formula
- Units & benchmarks
- Key levers
- Where it shows up in cases
- How it's charted
- Worked example
- Common traps
- Industry nuances
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