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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.
Related Topics
#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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