EBITDA Margin 5 Year Average
Returns the five-year average EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) margin for a company.
Supported Symbol Formats
| Type | Format | Example |
|---|---|---|
| US Stocks | SYMBOL | AAPL, MSFT |
Formula
EBITDA Margin = EBITDA / Revenue
Why EBITDA Margin?
EBITDA margin is useful because it:
- Excludes non-cash charges (depreciation, amortization)
- Excludes financing decisions (interest)
- Excludes tax jurisdictions
- Shows core operating efficiency
Industry Benchmarks
| Industry | Typical EBITDA Margin |
|---|---|
| Software | 30-50% |
| Telecom | 30-40% |
| Manufacturing | 10-20% |
| Retail | 5-10% |
Notes
- Returns value as a decimal (0.30 = 30%)
- Higher margin indicates better operational efficiency
- Compare within same industry
Syntax
=EBITDAMarginFiveYearAverage(Symbol)Examples
=EBITDAMarginFiveYearAverage("MSFT")=EBITDAMarginFiveYearAverage("AAPL")=EBITDAMarginFiveYearAverage("GOOGL")Symbol from cell reference
=EBITDAMarginFiveYearAverage("MSFT")*100When to Use
- Assess operational efficiency
- Compare companies with different capital structures
- M&A valuation analysis
- Cash flow proxy analysis
When NOT to Use
Common Issues & FAQ
Why is the value less than 1?
EBITDA margin is returned as a decimal. Multiply by 100 to get percentage (e.g., 0.30 = 30%).
Why do some analysts prefer EBITDA margin?
It removes effects of different depreciation methods, tax rates, and financing decisions, allowing better apples-to-apples comparisons.
What are limitations of EBITDA margin?
It ignores capital expenditure needs (capex), so capital-intensive businesses may look better on EBITDA margin than they actually perform.
Get Access to 1 Billion Usable Market data points IN YOUR EXCEL SHEETS WITH EASY TO USE EXCEL FUNCTIONS
Get started today
▶
How does MarketXLS work?