EBITA

Earnings Before Interest, Taxes and Amortization

In one sentenceLike EBITDA but without adding back depreciation, so it reflects the cost of wearing out equipment and other physical assets.

What it means

EBITA keeps depreciation as a real cost while still removing amortization (the write-down of intangible assets like acquired customer lists or goodwill). It is used for asset-heavy businesses, where equipment wear is a real ongoing expense.

People often say EBITA when they mean EBITDA. They are different numbers, so check which one is being used.

How to use it

• When someone quotes a valuation multiple, confirm whether it is a multiple of EBITDA or EBITA.

Related terms

EBITDA Valuation Multiple P&L