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  • Term

    Main definition


    A cash-flow based measurement of the operating profitability of a company. This is an acronym for a company's earnings before interest, taxes, depreciation, and amortization. This measure is often used by sophisticated investors as a basis for valuing the company and their investment. One often utilized valuation methodology is based on a comparison of (reasonably comparable) private and public companies' values as a multiple of EBITDA.

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