Profitability

EBITDA

Earnings Before Interest, Taxes, Depreciation, and Amortization - a measure of operating profitability.

What does EBITDA mean?

EBITDA strips out financing decisions (interest), tax jurisdiction effects, and non-cash accounting charges (depreciation, amortization) to show how much cash a business generates from operations. It is widely used in valuations, especially for M&A transactions, where buyers compare companies across different capital structures. EBITDA multiples are the most common valuation method for mid-market businesses in the UAE and MENA region.