EBITDA Defined and How to Calculate It
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YouTubeChristopher J. Campbell, CPA
EBITDA Defined and How to Calculate It
You may hear the term EBITDA - which stands for Earnings Before Interest, Taxes, Depreciation and Amortization. It's used to value businesses. To calculate EBITDA, take the net income from your financial statements and add back the following expenses: Interest paid on debt like loans or credit cards Income taxes paid Depreciation expense ...
1.1K viewsOct 2, 2023
Earnings Before Interest, Taxes, Depreciation and Amortization Explained
When buying a business, understanding financial terms is key. Sara explains the difference between Seller's Discretionary Earnings (SDE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). Knowing who the buyer is determines which metric to use. The difference between a good deal and a bad one starts here → https://youtu.be/TYUlh5g2lRo Want to buy a business without guessing? Get the free step-by-step video course private Skool community from a broker who’s closed 600 d
When buying a business, understanding financial terms is key. Sara explains the difference between Seller's Discretionary Earnings (SDE) and Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA). Knowing who the buyer is determines which metric to use. The difference between a good deal and a bad one starts here → https://youtu.be/TYUlh5g2lRo Want to buy a business without guessing? Get the free step-by-step video course private Skool community from a broker who’s closed 600 d
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