2005-01-23

EBITDA

E.B.I.T.D.A. stands for earnings before interest, taxes, depreciation, and amortization.

If a company has a large amount of assets which are subject to depreciacion, or it has big amount of bought assets to amortize, the EBITDA gives a more realistic value of real earnings.

This is of interest for both comparing companies in the same industry sector and of different industries.

more links:
http://beginnersinvest.about.com/cs/investinglessons/l/blles4ebitda.htm
http://www.investorwords.com/1632/EBITDA.html
http://www.investopedia.com/terms/e/ebitda.asp

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