(Ver OIBDA) Earnings before Interest, Taxes, Depreciation and Amortization.
A measure of cash flow calculated as:
Revenue- Expenses (including tax, interest, depreciation and amortization)
Ebitda is looking at the cash flow of the Company. By not including interests, taxes, depreciation and amortization we can see clearly the amount of money a Company is bringing in.
This is especially useful when a Company wants to takeover another Company because the Ebitda would cover any loan payments needed to finance the takeover.