{"id":53448,"date":"2025-11-03T16:33:38","date_gmt":"2025-11-03T11:03:38","guid":{"rendered":"https:\/\/univest.in\/blogs-2\/?p=53448"},"modified":"2025-11-03T16:35:18","modified_gmt":"2025-11-03T11:05:18","slug":"ebitda-formula-calculations-and-benefits","status":"publish","type":"post","link":"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/","title":{"rendered":"EBITDA (Earnings Before Interest, Taxes, Depreciation &#038; Amortisation)"},"content":{"rendered":"<p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Click Here &#8211; Get Free Investment Predictions<\/strong><\/a><\/p><p>EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation and is a metric used to evaluate a company\u2019s operating performance. EBITDA is widely used to assess a company&#8217;s performance and helps determine its underlying profitability and operating performance, i.e., how much profit the business generates from providing services, selling goods, and other activities within a given time period. This type of analysis helps provide a view of the profitability of operating a business against your long-term benchmark. <strong>Earnings before interest, taxes, depreciation, and amortisation aim to show the cash profit generated by the company\u2019s operations. &nbsp; <\/strong>&nbsp;&nbsp;<\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_65 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_is_EBITDA\" title=\"What is EBITDA?&nbsp;\">What is EBITDA?&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Key_Highlights_for_EBITDA\" title=\"Key Highlights for EBITDA:\">Key Highlights for EBITDA:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#How_Does_EBITDA_Use_Know_About_Users\" title=\"How Does EBITDA Use: Know About Users\">How Does EBITDA Use: Know About Users<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#How_is_EBITDA_Calculated\" title=\"How is EBITDA Calculated?\">How is EBITDA Calculated?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Steps_to_Calculate_EBITDA\" title=\"Steps to Calculate EBITDA:&nbsp;\">Steps to Calculate EBITDA:&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBITDA_Formula\" title=\"EBITDA Formula:\">EBITDA Formula:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Here_are_the_descriptions_for_the_terms_that_we_used_in_the_formula\" title=\"Here are the descriptions for the terms that we used in the formula:&nbsp;\">Here are the descriptions for the terms that we used in the formula:&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Example_of_EBITDA_Calculation\" title=\"Example of EBITDA Calculation\">Example of EBITDA Calculation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBIT_Vs_EBITDA\" title=\"EBIT Vs EBITDA\">EBIT Vs EBITDA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_is_EBITDA_Margin\" title=\"What is EBITDA Margin?\">What is EBITDA Margin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_is_the_Formula_for_EBITDA_Margin\" title=\"What is the Formula for EBITDA Margin?\">What is the Formula for EBITDA Margin?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EVEBITDA_Example\" title=\"EV\/EBITDA Example:\">EV\/EBITDA Example:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBITDA_as_a_Financial_Metric\" title=\"EBITDA as a Financial Metric\">EBITDA as a Financial Metric<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBITDA_Coverage_Ratio\" title=\"EBITDA Coverage Ratio\">EBITDA Coverage Ratio<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBITDA_Coverage_Ratio_Formula\" title=\"EBITDA Coverage Ratio: Formula&nbsp;\">EBITDA Coverage Ratio: Formula&nbsp;<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Explanation\" title=\"Explanation:\">Explanation:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBITDA_in_Financial_Modelling\" title=\"EBITDA in Financial Modelling\">EBITDA in Financial Modelling<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#EBITDA_Vs_Net_Income\" title=\"EBITDA Vs Net Income&nbsp;\">EBITDA Vs Net Income&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Advantages_of_EBITDA\" title=\"Advantages of EBITDA\">Advantages of EBITDA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Disadvantages_of_EBITDA\" title=\"Disadvantages of EBITDA\">Disadvantages of EBITDA<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-23\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_is_EBITDA-2\" title=\"What is EBITDA?\">What is EBITDA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-24\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_is_amortisation_in_EBITDA\" title=\"What is amortisation in EBITDA?\">What is amortisation in EBITDA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-25\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#How_to_calculate_EBITDA\" title=\"How to calculate EBITDA?\">How to calculate EBITDA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-26\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_are_the_advantages_of_the_EBITDA\" title=\"What are the advantages of the EBITDA?\">What are the advantages of the EBITDA?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-27\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#What_can_be_considered_a_reasonable_EBITDA\" title=\"What can be considered a reasonable EBITDA?\">What can be considered a reasonable EBITDA?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-28\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Also_Explore\" title=\"Also Explore\">Also Explore<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-29\" href=\"https:\/\/univest.in\/blogs-2\/ebitda-formula-calculations-and-benefits\/#Univest_Screeners\" title=\"Univest Screeners\">Univest Screeners<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_EBITDA\"><\/span><strong>What is EBITDA?<\/strong>&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h2><p>EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortisation, is a financial metric. Companies use it mainly to compute their economic performance. EBITDA meaning as earnings before interest, taxes, depreciation, and amortisation, providing a clear view of core earnings. The EBITDA metric is a variation of operating income (EBIT) that excludes certain non-cash expenses, as it is not recognised under IFRS or US GAAP. <strong>In fact, confident investors like Warren Buffett have a particular opinion on this metric, as it does not account for the depreciation of a company\u2019s assets.&nbsp;<\/strong><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Highlights_for_EBITDA\"><\/span><strong>Key Highlights for EBITDA:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><ul class=\"wp-block-list\"><li>EBITDA is short for Earnings Before Interest, Taxes and Depreciation. It is another term we use for cash flow after the add-back of Depreciation and Amortisation. It is also independent of a company\u2019s capital structure.\u00a0<\/li>\n\n<li>EBITDA can be calculated in multiple ways and is extensively used in valuation.<\/li>\n\n<li>However, EBITDA is a non-IFRS\/non-GAAP calculation, and there are many critics of EBITDA, including Warren Buffett.\u00a0<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_Does_EBITDA_Use_Know_About_Users\"><\/span><strong>How Does EBITDA Use: Know About Users<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>EBITDA is widely used by businesses, valuators, bankers, and others to compare a company\u2019s financial performance to that of its industry peers and gauge its profitability before considering non-core expenses and charges.<\/p><ul class=\"wp-block-list\"><li><strong>Businesses and Valuators: <\/strong>Entrepreneurs and business valuators often use EBITDA to calculate a company\u2019s valuation for purposes of a business sale or acquisition. A standard valuation method is to apply a multiple to EBITDA to determine the business&#8217;s value.\u00a0<\/li>\n\n<li><strong>Financial Institutions: <\/strong>Bankers use EBITDA to understand how much cash flow a company has available to pay for long-term debt. Bankers also use it to calculate a company\u2019s debt coverage ratio, which is another measure of its ability to make debt payments.\u00a0<\/li>\n\n<li><strong>Investors: <\/strong>Investors have used EBITDA to compare profitability across companies and industries, and it helps them understand a firm\u2019s core earnings potential before accounting for non-cash expenses.<\/li>\n\n<li><strong>Lenders and Creditors: <\/strong>Banks and other financial institutions use EBITDA to assess a company\u2019s ability to repay debt, as it reflects the cash flow available to service interest and principal payments.\u00a0<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_is_EBITDA_Calculated\"><\/span><strong>How is EBITDA Calculated?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The calculation of EBITDA involves subtracting a company\u2019s expenses other than interest, taxes, depreciation, and amortisation from its net income.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Steps_to_Calculate_EBITDA\"><\/span><strong>Steps to Calculate EBITDA:&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Here are the steps to determine EBITDA:<\/p><ul class=\"wp-block-list\"><li><strong>Acquire the business income statement: <\/strong>An income statement is a document that lists a business\u2019s revenue and costs over a period of time, such as a fiscal quarter or a year. At a minimum, the income statement has the categories \u201crevenues\u201d and \u201cexpenses\u201d.\u00a0<\/li>\n\n<li><strong>Identify figures: <\/strong>The numbers that are needed to calculate EBITDA are available on the income statement. The document uses the EBITDA formula with net income, and these are considered in the non-operating subcategory of the expenses category.<\/li>\n\n<li><strong>Calculate EBITDA: <\/strong>The first option is to take the net income, interest expense, taxes, depreciation, and amortisation figures from the income statement and add them together, and the second option is to add the operating income, depreciation and amortisation figures from the income statement to find EBITDA.\u00a0\u00a0<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBITDA_Formula\"><\/span><strong>EBITDA Formula:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-image size-large\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-1024x536.jpg\" alt=\"\" class=\"wp-image-53457\" srcset=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-1024x536.jpg 1024w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-300x157.jpg 300w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-768x402.jpg 768w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-900x471.jpg 900w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-600x314.jpg 600w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-150x79.jpg 150w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><p>The top-down EBITDA starts with operating profit (EBIT) from the income statement and adds back depreciation and amortisation (D&amp;A) from the cash flow statement (CFS).&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<\/p><p><strong>EBITDA Formula = Net Profit + Interest + Taxes + Depreciation + Amortisation<\/strong><\/p><p><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OR<\/strong><\/p><p><strong>EBITDA Formula = Operating Income + Depreciation + Amortisation<\/strong><\/p><p><strong>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;OR<\/strong><\/p><p><strong>EBITDA Formula = EBIT + Depreciation + Amortisation<\/strong><\/p><p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Click for Our Big Prediction<\/strong><\/a><\/p><p>On the income statement, the non-cash D&amp;A expense is spread as a separate line item, apart from <strong>COGS <\/strong>and <strong>Operating expenses <\/strong>(SG&amp;A).&nbsp;<\/p><p>Therefore, one practical tip is to use the D&amp;A expense from the cash flow statement (CFS) to ensure accuracy.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Here_are_the_descriptions_for_the_terms_that_we_used_in_the_formula\"><\/span><strong>Here are the descriptions for the terms that we used in the formula:&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><ul class=\"wp-block-list\"><li><strong>Net Income: <\/strong>This is the company\u2019s total revenue minus all expenses, including costs of goods sold (COGS), operating expenses, interest, taxes, and other relevant costs. Net income is the \u201cbottom line\u201d profit that remains after all fees are deducted from revenue. <strong>\u00a0<\/strong><\/li>\n\n<li><strong>Interest: <\/strong>Interest represents the cost of borrowing for a company. It includes interest on loans, bonds, and other forms of debt. By adding back interest to net income, EBITDA provides a clearer picture of the company\u2019s operating performance, free of the impact of financing decisions.<\/li>\n\n<li><strong>Taxes: <\/strong>Taxes include both income taxes and other taxes paid by the company. By adding back taxes to the calculation, EBITDA eliminates the impact of the company\u2019s tax environment, resulting in more stable profits.<\/li>\n\n<li><strong>Depreciation: <\/strong>It is<strong> <\/strong>a non-cash expense that reflects the reduction in the value of tangible assets over time. Including depreciation in the EBITDA calculation helps remove the impact of this accounting measure.<\/li>\n\n<li><strong>Amortisation: <\/strong>Amortisation is similar to depreciation but applies to intangible assets, such as patents, trademarks, and goodwill. Adding back amortisation to the EBITDA calculation has adjusted the non-cash expenses.\u00a0<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Example_of_EBITDA_Calculation\"><\/span><strong>Example of EBITDA Calculation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Below, we will discuss the Income Statement of Asian Paints as of 30th March, 2025, for the calculation of EBITDA.<\/p><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Particulars<\/strong><\/td><td><strong>Amount (\u20b9)<\/strong><\/td><\/tr><tr><td><strong>Total Revenue&nbsp;<\/strong><\/td><td>19,16,36,800<\/td><\/tr><tr><td><strong>Cost of Revenue<\/strong><\/td><td>11,49,88,200<\/td><\/tr><tr><td><strong>Operating Expense<\/strong><\/td><td>4,55,86,000<\/td><\/tr><tr><td><strong>Selling, general and administrative expenses<\/strong><\/td><td>1,07,99,400<\/td><\/tr><tr><td><strong>Interest expense<\/strong><\/td><td>5,10,000<\/td><\/tr><tr><td><strong>Income Tax<\/strong><\/td><td>1,09,88,200<\/td><\/tr><tr><td><strong>Income from operations&nbsp;<\/strong><\/td><td>2,21,19,100<\/td><\/tr><tr><td><strong>Net Income<\/strong><\/td><td>2,15,94,900<\/td><\/tr><\/tbody><\/table><\/figure><p><strong>As per the Cash Flow Statement, <\/strong>the company&#8217;s depreciation and amortisation stood at \u20b943,06,700.&nbsp;<\/p><p><strong>Earnings before Interest, Taxes, Depreciation and amortisation <\/strong>do not consider income tax and interest. So the EBITDA of Asian Paints for the Financial Year 2018-19 would be,&nbsp;<\/p><p><strong>EBITDA Formula = Net Income + Interest + Taxes + Depreciation + Amortisation<\/strong><\/p><p><strong>EBITDA = \u20b9( 21594900 + 5,100,00 + 10988200 + 4306700)<\/strong><\/p><p><strong>EBITDA = \u20b937,399,800.<\/strong><\/p><p>You must note that the slightest mistake in the values of these components would impact a firm\u2019s profitability significantly. To avoid this, special care must be taken to keep finances up to date and use a reliable accounting system.&nbsp;<\/p><p><em>Sign up on Univest to get more investment predictions and access to exclusive screeners! <\/em><a href=\"https:\/\/univest.in\/user\/log-in\"><em>Click here<\/em><\/a><em>.<\/em><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBIT_Vs_EBITDA\"><\/span><strong>EBIT Vs EBITDA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Basis<\/strong><\/td><td><strong>EBIT (Earnings Before Interests &amp; Taxes)<\/strong><\/td><td><strong>EBITDA (Earnings Before Interests, Taxes, Depreciation &amp; Amortisation)<\/strong><\/td><\/tr><tr><td><strong>Interest &amp; Taxes<\/strong><\/td><td>Eliminates Interest &amp; Taxes<\/td><td>Eliminates interest, taxes, depreciation and amortisation<\/td><\/tr><tr><td><strong>Non-cash outlays<\/strong><\/td><td>It includes non-cash outlays like depreciation and amortisation<\/td><td>It does not include non-cash outlays.<\/td><\/tr><tr><td><strong>Operating Earnings<\/strong><\/td><td>It is widely reported, typically by highly leveraged organisations with good operating earnings.<\/td><td>It is usually preferred as a profitability measure for organisations that have sustainable investments in fixed assets.&nbsp;<\/td><\/tr><tr><td><strong>Reliability<\/strong><\/td><td>Investors do not properly rely on EBIT calculations, as they can give a misleading impression.<strong>&nbsp;&nbsp;<\/strong><\/td><td>It will provide you with reliable information and not mislead you.&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_EBITDA_Margin\"><\/span><strong>What is EBITDA Margin?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-1024x536.jpg\" alt=\"\" class=\"wp-image-53456\" srcset=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-1024x536.jpg 1024w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-300x157.jpg 300w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-768x402.jpg 768w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-900x471.jpg 900w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-600x314.jpg 600w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-150x79.jpg 150w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><p><a href=\"https:\/\/univest.in\/user\/log-in\"><strong>Tap to Access Best Research Pieces<\/strong><\/a><\/p><p>EBITDA margin refers to the relation between a firm\u2019s aggregate earnings and total revenue. It mainly indicates how much profit a firm can generate in a year. EBITDA margin is a profitability ratio that measures the percentage of revenue a company generates before interest, taxes, depreciation, and amortisation. Earnings are calculated by taking sales revenue and deducting operating expenses, such as cost of goods sold (COGS) and selling, general, &amp; administrative (SG&amp;A) expenses, but excluding depreciation and amortisation.&nbsp;&nbsp;&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Formula_for_EBITDA_Margin\"><\/span><strong>What is the Formula for EBITDA Margin?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The first step in calculating EBITDA is to obtain earnings before interest and taxes (EBIT) from the income statement. The next step is to add back the depreciation and amortisation expenses.&nbsp;<\/p><p><strong>EBITDA Margin = Operating Income (EBIT) + Depreciation + Amortisation<\/strong><\/p><p>To compute the EBITDA ratio, the following formula is used:<\/p><p><strong>EBITDA Margin = Operating Income (EBIT) + Depreciation + Amortisation&nbsp;<\/strong><\/p><p>To compute the EBITDA ratio, the following is used:<\/p><p><strong>EBITDA Margin = EBITDA\/ Net Sales<\/strong><\/p><p><strong>EBITDA Used in Valuation (EV\/EBITDA Multiple)<\/strong>&nbsp;&nbsp;<\/p><p>While comparing two companies, the <strong>Enterprise Value\/EBITDA ratio can<\/strong> give investors a general idea of whether a company is overvalued (high ratio) or undervalued (low ratio). It\u2019s essential to compare companies that are similar in nature (same industry, operations, customers, margins, growth rate, etc.), as different sectors have vastly different average ratios (high ratios for high-growth industries, low ratios for low-growth sectors).&nbsp;<\/p><p><em>Download the <\/em><a href=\"http:\/\/apps.apple.com\/in\/app\/univest-stocks-investment\/id6443753518\" rel=\"nofollow noopener\" target=\"_blank\"><em>Univest iOS App<\/em><\/a><em> or the <\/em><a href=\"http:\/\/play.google.com\/store\/apps\/details?id=com.univest.capp&amp;hl=en_IN\" rel=\"nofollow noopener\" target=\"_blank\"><em>Univest Android App<\/em><\/a><em> to get daily stock recommendations and insightful research pieces!<\/em><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EVEBITDA_Example\"><\/span><strong>EV\/EBITDA Example:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Company ABC and Company XYZ are competing grocery stores that operate in New York. ABC has an enterprise value of $200M and an EBITDA of $10M, while firm XYZ has an enterprise value of $300M and an EBITDA of $30M. Which company is undervalued on an EV\/EBITDA basis?<\/p><p><strong>Sol. Company ABC:<\/strong><\/p><p>EV = $200M<\/p><p>EBITDA = $10M<\/p><p>EV\/EBITDA = $200M\/$10M&nbsp;<\/p><p><strong>= 20x<\/strong><\/p><p><strong>Company XYZ:&nbsp;<\/strong><\/p><p>EV = $300M<\/p><p>EBITDA = $30M<\/p><p>EV\/EBITDA =<strong> <\/strong>$300M\/ $30M&nbsp;<\/p><p><strong>= 10x<\/strong><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBITDA_as_a_Financial_Metric\"><\/span><strong>EBITDA as a Financial Metric<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>EBITDA shows a company\u2019s financial performance without taking into account its capital investments, including plant, property, and equipment. It also does not account for debt-related expenses and emphasises the firm\u2019s operating decisions.&nbsp;<\/p><p>All these reasons highlight why it may not be an accurate measure of profitability. Additionally, it is often used to hide poor financial judgment, such as taking on a high-interest loan or using fast-depreciating equipment with high replacement costs.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBITDA_Coverage_Ratio\"><\/span><strong>EBITDA Coverage Ratio<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>The EBITDA-to-interest coverage ratio, or EBITDA coverage ratio, is a financial metric that is used to assess a firm\u2019s financial capability. It examines whether pre-tax income would be sufficient to cover the firm\u2019s interest-bearing expenses.&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBITDA_Coverage_Ratio_Formula\"><\/span><strong>EBITDA Coverage Ratio: Formula&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-image size-large\"><img decoding=\"async\" width=\"1024\" height=\"536\" src=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-1024x536.jpg\" alt=\"\" class=\"wp-image-53459\" srcset=\"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-1024x536.jpg 1024w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-300x157.jpg 300w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-768x402.jpg 768w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-900x471.jpg 900w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-600x314.jpg 600w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-150x79.jpg 150w, https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1.jpg 1200w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/figure><p><strong>EBITDA Coverage Ratio = (EBITDA + Lease Payments)\/ (Interest Payments + Principal Payments + Lease Payments)<\/strong><\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Explanation\"><\/span><strong>Explanation:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>If the outcome is greater than 1 or equal to 1, it suggests the firm is financially strong. Furthermore, it indicates that the firm can repay its liabilities. It must be noted that there is a fundamental difference between the EBITDA-to-interest coverage ratio and EBITDA coverage. For instance, the interest coverage ratio uses earnings before interest, taxes, and depreciation, whereas the latter uses a broader measure, EBITDA.&nbsp;&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBITDA_in_Financial_Modelling\"><\/span><strong>EBITDA in Financial Modelling<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>EBITDA is used frequently in financial modelling as a starting point for calculating unlevered free cash flow. Earnings before interest, taxes, depreciation, and amortisation is such an often-referenced metric in finance that it is helpful to use it as a reference point, even though a discounted cash flow (DCF) model values the business based on its free cash flow.&nbsp;&nbsp;&nbsp;<\/p><p><strong>Example: <\/strong>Company XYZ accounts for its $12,000 depreciation and amortisation expense as part of its operating expenses. Calculate their Earnings Before Interest, Taxes, Depreciation and Amortisation.<\/p><p><strong>Sol. <\/strong>&nbsp;<strong>&nbsp;EBITDA = <\/strong>Net Income + Tax Expense + Interest Expense + Depreciation &amp; Amortisation Expense&nbsp;<\/p><p>= $19,000 + $19,000 + $2,000 + $12,000<\/p><p>= $ 52,000<\/p><p><strong>EBITDA = <\/strong>Revenue &#8211; Cost of Goods Sold &#8211; Operating Expenses + Depreciation &amp; Amortisation Expense&nbsp;<\/p><p>= $82,000 &#8211; $23,000 &#8211; $19,000 + $12,000<\/p><p>= $52,000. <strong>&nbsp;<\/strong><\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"EBITDA_Vs_Net_Income\"><\/span><strong>EBITDA Vs Net Income&nbsp;<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Basis<\/strong><\/td><td><strong>EBITDA<\/strong><\/td><td><strong>Net Income<\/strong><\/td><\/tr><tr><td><strong>Defination&nbsp;<\/strong><\/td><td>It stands for earnings before interest, taxes, depreciation, and amortisation, making it an estimate of a company\u2019s operating revenues.<\/td><td>Net Income is a more conservative calculation that considers all expenses, including taxes and interest.&nbsp;<\/td><\/tr><tr><td><strong>Operating Expenses<\/strong><\/td><td>EBITDA provides a clearer picture of a company\u2019s operating performance by factoring out non-operating expenses.&nbsp;<\/td><td>Net income is determined by subtracting a company\u2019s total operating expenses from its revenues.<\/td><\/tr><tr><td><strong>Depreciation &amp; Amortisation<\/strong><\/td><td>The main benefit of using EBITDA is that it\u2019s relatively easy to calculate since it ignores non-cash expenses like depreciation and amortisation.&nbsp;<\/td><td>It\u2019s important to note that net income considers depreciation and amortisation, while EBITDA doesn\u2019t.&nbsp;<\/td><\/tr><tr><td><strong>Indicates<\/strong><\/td><td>EBITDA measures a company\u2019s earnings before deductions for taxes, costs, depreciation, and amortisation.<\/td><td>EBITDA is a good indicator of operating performance, and net income is a more comprehensive metric that reflects profitability.<\/td><\/tr><\/tbody><\/table><\/figure><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Advantages_of_EBITDA\"><\/span><strong>Advantages of EBITDA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><ul class=\"wp-block-list\"><li>It offers a reliable structure for the business growth and the effectiveness of its operational model.<\/li>\n\n<li>The risks associated with variables that mainly affect financial variables, including capital investment, are significantly reduced.<\/li>\n\n<li>It shows the actual value of a company\u2019s cash flow generated by active operations.<\/li>\n\n<li>EBITDA only accounts for expenses required to keep a firm\u2019s day-to-day operations running.<\/li>\n\n<li>A company\u2019s debt does not get transferred during a sale, and therefore, how a firm has been financed is usually not taken into account.\u00a0<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Disadvantages_of_EBITDA\"><\/span><strong>Disadvantages of EBITDA<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>Some disadvantages of the EBITDA are given as follows:<\/p><ul class=\"wp-block-list\"><li>Due to the fact that debt expenses are excluded from EBITDA, the resulting figure is considered to be misleading. It does not disclose the information value of a company\u2019s actual earnings or liquid assets.\u00a0<\/li>\n\n<li>Many business owners use it to approve their poor financial judgment and finance-related shortcomings.<\/li>\n\n<li>Companies are required to use other financial metrics along with EBITDA to arrive at a more accurate financial metric.\u00a0\u00a0<\/li>\n\n<li>It does not affect high-interest financial debt, and companies are required to use other financial metrics alongside EBITDA. It is an efficient way to measure a firm&#8217;s core profit trends.<\/li><\/ul><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><p>EBITDA provides a brief overview of a company\u2019s operational efficiency and profitability, excluding the impact of financing and accounting decisions. It is important to interpret EBITDA in the context of the industry, as different sectors may have varying levels of capital intensity and depreciation. Additionally, investors should be aware of any specific adjustments the company makes to EBITDA calculations in the context of the industry, as some companies may exclude certain expenses to present a more favourable picture of their financial performance.&nbsp; EBITDA meaning as earnings before interest, taxes, depreciation, and amortisation, providing a clear view of core earnings. The EBITDA metric is a variation of operating income (EBIT) that excludes certain non-cash expenses, as it is not recognised under IFRS or US GAAP.&nbsp;&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span><strong>FAQs<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_EBITDA-2\"><\/span><strong>What is EBITDA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><ol class=\"wp-block-list\"><\/ol><p>Ans. EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortisation, is a financial metric. Companies use it mainly to compute their economic performance. EBITDA meaning as earnings before interest, taxes, depreciation, and amortisation, providing a clear view of core earnings. Earnings before interest, taxes, depreciation, and amortisation aim to show the cash profit generated by the company\u2019s operations.&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_amortisation_in_EBITDA\"><\/span><strong>What is amortisation in EBITDA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. In EBITDA, Amortisation refers to expensing intangible assets, as we know intangible assets are non-physical assets; examples include goodwill, copyrights, patents, trade names, customer lists, contracts, and franchise agreements. Intangible assets are typically complex compared to fixed assets.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"How_to_calculate_EBITDA\"><\/span><strong>How to calculate EBITDA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. EBITDA can be calculated by utilising the information from a business\u2019s income statement, cash flow statement, and balance sheet. The formula is as follows.<\/p><p>EBITDA = Net Income + Interest + Taxes + Depreciation + Amortisation. On the income statement, the non-cash D&amp;A expense is spread as a separate line item, apart from COGS<strong> <\/strong>and Operating expenses<strong> <\/strong>(SG&amp;A).&nbsp;<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_the_advantages_of_the_EBITDA\"><\/span><strong>What are the advantages of the EBITDA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans.\u00a0 EBITDA offers a reliable structure for business growth and the effectiveness of its operational model. The risks associated with variables that mainly affect financial variables, including capital investment, are significantly reduced. EBITDA only accounts for expenses required to keep a firm\u2019s day-to-day operations running.<\/p><h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_can_be_considered_a_reasonable_EBITDA\"><\/span><strong>What can be considered a reasonable EBITDA?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3><p>Ans. As mentioned, EBITDA is a metric that tells about the company\u2019s financial performance and profitability, so a higher EBITDA is clearly better than a lower EBITDA.&nbsp;&nbsp;<\/p><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Also_Explore\"><\/span><strong>Also Explore<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Best Stocks&nbsp;<\/strong><\/td><td><strong>Multibagger Stocks&nbsp;<\/strong><\/td><td><strong>Penny Stocks<\/strong><\/td><td><strong>Fundamentally Strong Stocks&nbsp;<\/strong><\/td><td><strong>Sector-Wise Stocks<\/strong><\/td><td><strong>PSU \/Government Stocks<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/blogs\/best-indian-stocks-for-next-10-years\">For the Next 10 Years<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/multibagger-stocks-for-next-5-years\">For the Next 5 Years<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/solar-penny-stocks\">Solar Penny Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/fundamentally-strong-stocks-bse\">On BSE<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/solar-energy-stocks\">Solar Energy Sector<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/psu-stocks-list\">PSU Stocks List<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/blogs\/best-long-term-stocks-to-invest\">Long Term<\/a>&nbsp;<\/td><td><a href=\"https:\/\/univest.in\/blogs\/multibagger-penny-stocks-below-100-rs\">Below 100 <\/a>Rs<\/td><td><a href=\"https:\/\/univest.in\/web-stories\/top-5-penny-stocks-under-re-1\">Top 5 Penny Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/best-fundamentally-strong-stocks\">For Long-Term<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/best-hospitality-stocks\">Hospitality Sector<\/a>&nbsp;<\/td><td><a href=\"https:\/\/univest.in\/blogs\/psu-stocks\">PSU Stocks in 2025<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/blogs\/best-bike-stocks\">Best Bike Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/multibagger-penny-stocks\">For 2025<\/a><\/td><td><a href=\"https:\/\/univest.in\/web-stories\/best-penny-stocks-to-invest-in-india\">Best Penny Stocks in India<\/a><\/td><td><a href=\"https:\/\/www.univest.in\/blogs\/penny-shares\">Penny Shares<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/hotel-stocks\">Hotel Sector<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/top-government-stocks-in-india\">Government Stocks in 2024<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/blogs\/top-liquor-stocks-in-india-2\">Best Liquor Stocks<\/a><\/td><td>High-Growth<a href=\"https:\/\/univest.in\/blogs\/multibagger-stocks-below-100\"> Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/best-fundamentally-strong-penny-stocks\">For 2025<\/a><\/td><td><\/td><td><a href=\"https:\/\/univest.in\/blogs\/best-10-agriculture-stocks-in-india-2025\">Agriculture Sector<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/government-stocks-list\">Government Stocks List<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/blogs\/best-railway-stocks\">Best Railway Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/web-stories\/multibagger-stocks-under-rs-500-india-2024\">Under 500<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/penny-stocks\">Penny Stocks<\/a>&nbsp;<\/td><td><\/td><td><a href=\"https:\/\/univest.in\/blogs\/best-pharma-stocks\">Pharma Sector<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/government-stocks-in-india\">Government Stocks in 2025<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/blogs\/auto-sector-stocks\">Best Auto Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/blogs\/top-10-multibagger-penny-stocks-for-2026\">For 2026<\/a><\/td><td><\/td><td><\/td><td><a href=\"https:\/\/univest.in\/blogs\/best-oil-and-gas-stocks\">Oil and Gas Sector<\/a><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure><h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Univest_Screeners\"><\/span><strong>Univest Screeners<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2><figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><tbody><tr><td><strong>Exclusive<\/strong><\/td><td><strong>Indices<\/strong><\/td><td><strong>Breakouts<\/strong><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/short-term-verdict-buy\">Buy in the Short Term<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nifty-smlcap-100\">Nifty Small Cap 100<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/daily-fresh-breakouts\">Daily Fresh Breakouts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/long-term-verdict-buy\">Buy in the Long Term<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nifty-midcap\">Nifty Midcap<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/weekly-breakouts\">Weekly Breakouts<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/fii-holding\">FII Holdings Change<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nifty-bank\">Nifty Bank<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/oversold-stocks\">Oversold Stocks<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/golden-crossover\">Golden Crossover<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/sensex\">Sensex<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nearing-breakout\">Nearing Breakout<\/a><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/upcoming-dividents\">Upcoming Dividends<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nifty-fin-service\">Nifty Fin Service<\/a><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/dii-holding\">DII Holdings Change<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/bankex\">Bankex<\/a><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/highest-dividend-paying-stocks\">High Dividend Stocks<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nifty-midcap-100\">Nifty Mid Cap 100<\/a><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/top-results-to-watch\">Earnings Announced<\/a><\/td><td><a href=\"https:\/\/univest.in\/screeners\/nifty50\">Nifty 50<\/a><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/fundamentally-strong-stocks\">Fundamentally Strong&nbsp;<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/top-gainers\">Top Gainers<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/top-losers\">Top Losers<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/low-debt-mid-cap\">Low Debt Mid Caps<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/cash-rich-small-cap\">Cash-Rich Small Caps<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/volume-shockers\">Volume Shockers<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/52-week-high\">52-Week High&nbsp;<\/a><\/td><td><\/td><td><\/td><\/tr><tr><td><a href=\"https:\/\/univest.in\/screeners\/52-week-low\">52-Week Low<\/a><\/td><td><\/td><td><\/td><\/tr><\/tbody><\/table><\/figure><p><\/p>","protected":false},"excerpt":{"rendered":"<p>Click Here &#8211; Get Free Investment Predictions EBITDA stands for Earnings Before Interest, Taxes, Depreciation and Amortisation and is a metric used to evaluate a company\u2019s operating performance. EBITDA is widely used to assess a company&#8217;s performance and helps determine its underlying profitability and operating performance, i.e., how much profit the business generates from providing<\/p>\n","protected":false},"author":23,"featured_media":53449,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[24],"tags":[3073,3072],"class_list":["post-53448","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-market","tag-earning-before-interest","tag-ebitda"],"metadata":{"_edit_lock":["1762167919:23"],"_last_editor_used_jetpack":["block-editor"],"rank_math_internal_links_processed":["1"],"amazonS3_cache":["a:16:{s:109:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation.jpg\";a:2:{s:2:\"id\";i:53457;s:11:\"source_type\";s:13:\"media-library\";}s:118:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-1024x536.jpg\";a:2:{s:2:\"id\";i:53457;s:11:\"source_type\";s:13:\"media-library\";}s:141:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation.jpg\";a:2:{s:2:\"id\";i:53457;s:11:\"source_type\";s:13:\"media-library\";}s:150:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162515\/EBITDA-Formula-Operating-Income-Depreciation-Amortisation-1024x536.jpg\";a:2:{s:2:\"id\";i:53457;s:11:\"source_type\";s:13:\"media-library\";}s:73:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/What-is-EBITDA-Margin.jpg\";a:2:{s:2:\"id\";i:53456;s:11:\"source_type\";s:13:\"media-library\";}s:82:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/What-is-EBITDA-Margin-1024x536.jpg\";a:2:{s:2:\"id\";i:53456;s:11:\"source_type\";s:13:\"media-library\";}s:105:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin.jpg\";a:2:{s:2:\"id\";i:53456;s:11:\"source_type\";s:13:\"media-library\";}s:114:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162458\/What-is-EBITDA-Margin-1024x536.jpg\";a:2:{s:2:\"id\";i:53456;s:11:\"source_type\";s:13:\"media-library\";}s:73:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/EBITDA-Coverage-Ratio.jpg\";a:2:{s:2:\"id\";i:53458;s:11:\"source_type\";s:13:\"media-library\";}s:82:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/EBITDA-Coverage-Ratio-1024x536.jpg\";a:2:{s:2:\"id\";i:53458;s:11:\"source_type\";s:13:\"media-library\";}s:105:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162554\/EBITDA-Coverage-Ratio.jpg\";a:2:{s:2:\"id\";i:53458;s:11:\"source_type\";s:13:\"media-library\";}s:114:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03162554\/EBITDA-Coverage-Ratio-1024x536.jpg\";a:2:{s:2:\"id\";i:53458;s:11:\"source_type\";s:13:\"media-library\";}s:75:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/EBITDA-Coverage-Ratio-1.jpg\";a:2:{s:2:\"id\";i:53459;s:11:\"source_type\";s:13:\"media-library\";}s:84:\"\/\/univest.in\/blogs-2\/wp-content\/uploads\/2025\/11\/EBITDA-Coverage-Ratio-1-1024x536.jpg\";a:2:{s:2:\"id\";i:53459;s:11:\"source_type\";s:13:\"media-library\";}s:107:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1.jpg\";a:2:{s:2:\"id\";i:53459;s:11:\"source_type\";s:13:\"media-library\";}s:116:\"\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03163144\/EBITDA-Coverage-Ratio-1-1024x536.jpg\";a:2:{s:2:\"id\";i:53459;s:11:\"source_type\";s:13:\"media-library\";}}"],"rank_math_primary_category":["24"],"rank_math_seo_score":["82"],"rank_math_title":["What is EBITDA? Formula, Calculations, Margin & More"],"rank_math_description":["EBITDA or Earnings Before Interest, Taxes, Depreciation, and Amortisation, is a financial metric used to evaluate a company\u2019s operating performance. EBITDA Formula = EBIT + Depreciation + Amortisation.\r\n"],"rank_math_focus_keyword":["EBITDA"],"rank_math_robots":["a:2:{i:0;s:7:\"noindex\";i:1;s:8:\"nofollow\";}"],"_thumbnail_id":["53449"],"_edit_last":["23"],"_ez-toc-disabled":[""],"_ez-toc-insert":[""],"_ez-toc-header-label":[""],"_ez-toc-alignment":["none"],"_ez-toc-heading-levels":["a:0:{}"],"_ez-toc-alttext":[""],"_ez-toc-visibility_hide_by_default":[""],"_ez-toc-hide_counter":[""],"_ez-toc-exclude":[""],"_ez-toc-position-specific":["before"],"stm_select_gm_zoom":[""],"stm_agenda":[""],"stm_host":[""],"stm_select_approved_denied":[""],"stm_multiselect_approved":[""],"stm_multiselect_denied":[""],"stm_date":[""],"stm_time":[""],"stm_timezone":[""],"stm_duration":[""],"stm_password":[""],"stm_waiting_room":[""],"stm_join_before_host":[""],"stm_host_join_start":[""],"stm_start_after_participants":[""],"stm_mute_participants":[""],"stm_enforce_login":[""],"stm_alternative_hosts":[""],"top_bar_custom_style":[""],"top_bar_bg":[""],"wc_top_bar_cart_custom_style":[""],"wc_top_bar_cart_color":[""],"wc_top_bar_cart_icon_color_hover":[""],"wc_top_bar_cart_counter_color":[""],"wc_top_bar_cart_counter_color_hover":[""],"wc_top_bar_cart_counter_bg":[""],"wc_top_bar_cart_counter_bg_hover":[""],"top_bar_wpml_switcher_custom_style":[""],"wpml_switcher_color":[""],"top_bar_wpml_switcher_bg":[""],"top_bar_wpml_switcher_bg_hover":[""],"top_bar_wpml_switcher_color_hover":[""],"top_bar_socials_custom_style":[""],"top_bar_socials_color":[""],"top_bar_socials_color_hover":[""],"top_bar_search_custom_style":[""],"top_bar_search_color":[""],"top_bar_search_icon_color_hover":[""],"top_bar_contact_info_style":[""],"top_bar_contact_info_color":[""],"top_bar_contact_info_link_color":[""],"top_bar_contact_info_link_color_hover":[""],"top_bar_contact_info_select_bg":[""],"top_bar_contact_info_select_color":[""],"top_bar_contact_info_select_drop_bg":[""],"top_bar_contact_info_select_items_bg":[""],"top_bar_contact_info_select_items_color":[""],"top_bar_contact_info_select_items_hover":[""],"header_inverse":["default"],"enable_header_transparent":["off"],"header_nav_custom_style":[""],"header_bg":[""],"header_shadow":[""],"wc_cart_custom_style":[""],"wc_cart_icon_color":[""],"wc_cart_icon_color_hover":[""],"wc_cart_counter_color":[""],"wc_cart_counter_color_hover":[""],"wc_cart_counter_bg":[""],"wc_cart_counter_bg_hover":[""],"header_wpml_switcher_custom_style":[""],"header_wpml_switcher_color":[""],"header_wpml_switcher_color_hover":[""],"header_wpml_switcher_bg":[""],"header_wpml_switcher_bg_hover":[""],"header_socials_custom_style":[""],"header_socials_color":[""],"header_socials_color_hover":[""],"header_search_custom_style":[""],"header_search_icon_color":[""],"header_search_icon_color_hover":[""],"header_contact_info_style":[""],"header_contact_info_color":[""],"header_contact_info_link_color":[""],"header_contact_info_link_color_hover":[""],"header_button_custom_style":[""],"header_button_color":[""],"header_button_color_hover":[""],"header_button_bg":[""],"header_button_bg_hover":[""],"header_nav_menu_customize":[""],"header_nav_menu_link_color":[""],"header_nav_menu_link_color_hover":[""],"header_nav_menu_link_color_active":[""],"header_nav_menu_link_arrow_color":[""],"header_nav_menu_link_arrow_color_hover":[""],"header_nav_menu_level_1_bg":[""],"header_nav_menu_level_1_link_color":[""],"header_nav_menu_level_1_link_color_hover":[""],"header_nav_menu_level_1_link_bg_hover":[""],"header_nav_menu_level_1_link_arrow_color":[""],"header_nav_menu_level_1_link_arrow_color_hover":[""],"header_nav_menu_level_2_bg":[""],"header_nav_menu_level_2_link_color":[""],"header_nav_menu_level_2_link_color_hover":[""],"header_nav_menu_level_2_link_bg_hover":[""],"header_mega_menu_bg":[""],"header_mega_menu_title_color":[""],"header_mega_menu_title_color_hover":[""],"header_mega_menu_description_color":[""],"header_mega_menu_description_link_color":[""],"header_mega_menu_description_link_color_hover":[""],"header_mega_menu_color":[""],"header_mega_menu_color_hover":[""],"header_mega_menu_border_color":[""],"header_mega_menu_icons_color":[""],"header_nav_menu_customize_end":[""],"hfe_enabled_notice":[""],"disable_title_box":["default"],"hfe_disabled":[""],"enable_transparent":["default"],"title_box_title_bg_color":[""],"title_box_bg_custom_image":["default"],"title_box_bg_image":[""],"title_box_bg_position":["default"],"metabox_title_box_bg_position_x":[""],"metabox_title_box_bg_position_y":[""],"metabox_title_box_bg_attachment":["default"],"title_box_bg_size":["default"],"metabox_title_box_bg_size_slider":[""],"title_box_bg_repeat":["default"],"disable_title":["default"],"title_box_title_color":[""],"title_box_title_line_color":[""],"disable_breadcrumbs":["default"],"metabox_title_box_breadcrumbs_color":[""],"metabox_title_box_links_color":[""],"metabox_title_box_links_color_hover":[""],"content_bg_transparent":[""],"show_popup_single":[""],"popups_single":[""],"popups_single_event":[""],"popup_single_event_open_delay":[""],"popup_single_event_showing_in":[""],"popup_single_event_date_from":[""],"popup_single_event_date_to":[""],"popup_single_event_time_from":[""],"popup_single_event_time_to":[""],"popup_single_animation":[""],"popup_single_responsive":[""],"separator_footer_copyright_border_t":[""],"name":[""],"email":[""],"phone":[""],"company":[""],"memberId":[""],"testimonial_position":[""],"testimonial_company":[""],"testimonial_bg_img":[""],"testimonial_video_url":[""],"popups_width":[""],"popups_height":[""],"popups_image_bg":[""],"popups_color_bg":[""],"popups_border_radius":[""],"popups_template":[""],"rank_math_analytic_object_id":["4320"],"_wp_page_template":["default"],"rs_page_bg_color":[""],"rank_math_canonical_url":["https:\/\/univest.in\/blogs\/ebitda-formula-calculations-and-benefits"]},"jetpack_sharing_enabled":true,"jetpack_featured_media_url":"https:\/\/univest-blog.storage.googleapis.com\/blogs\/wp-content\/uploads\/2025\/11\/03160948\/What-is-EBITDA.jpg","_links":{"self":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/53448","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/users\/23"}],"replies":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/comments?post=53448"}],"version-history":[{"count":1,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/53448\/revisions"}],"predecessor-version":[{"id":53460,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/posts\/53448\/revisions\/53460"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media\/53449"}],"wp:attachment":[{"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/media?parent=53448"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/categories?post=53448"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/univest.in\/blogs-2\/wp-json\/wp\/v2\/tags?post=53448"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}