EBITDA is a financial metric that measures a company’s profitability before deducting interest, taxes, depreciation, and amortization. It focuses on the core operational earnings and helps investors and analysts compare companies regardless of capital structure, tax environment, or accounting policies. EBITDA is widely used in valuations, especially in mergers and acquisitions. However, as it is not a GAAP or IFRS standard, interpretations and calculations may vary across companies and industries.
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Explanation: EBITDA
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