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EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

Proxy for operating cash flow pre-capex; can overstate cash generation

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Fundamental

EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)

Proxy for operating cash flow pre-capex; can overstate cash generation

Definition

EBITDA measures earnings before interest, taxes, depreciation, and amortization. It approximates operating cash flow before capital expenditures. While useful for comparing companies with different depreciation policies, it can overstate cash generation in capital-intensive businesses.

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#operating cash flow #earnings #depreciation #cash flow proxy

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Category: Fundamental

Fundamental analysis examines a company's financial health, management quality, and market position to determine intrinsic value.

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