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EBITDA: what it is and how to read it

EBITDA is the business result before interest, taxes, depreciation and amortization. It is used as a proxy for the cash generated by the core activity, without mixing in how the company is financed or its taxes.

How it is calculated

EBITDA = operating profit + depreciation and amortization.

How to read it

It is mostly used to compare: debt against EBITDA (solvency) and enterprise value against EBITDA (valuation). Growing EBITDA year after year shows the business is getting bigger and more profitable.

EBITDA in the MeridIAn ranking

For example: NVIDIA, $201.3B; Apple, $168.0B; Alphabet, $173.2B; Inditex, €9.8B.

What to watch out for

It is not cash: it ignores what the company must invest to maintain its business and what it pays in interest and taxes. For capital-heavy businesses, EBITDA paints too rosy a picture.

Related metrics

EV / EBITDANet debt / EBITDAOperating margin

All metrics in the glossary → · Stocks by sector and country → · Ready-made screeners →

General information for educational purposes, not investment advice. Figures from the latest weekly analysis (Oct 8, 2026) with the latest available price.