EBITDA (TTM)
Returns Earnings Before Interest, Taxes, Depreciation, and Amortization for the trailing twelve months. EBITDA is often used as a proxy for operating cash flow.
EBITDA Formula
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
Or alternatively: EBITDA = Operating Income + Depreciation + Amortization
Uses of EBITDA
| Use Case | Application |
|---|---|
| Valuation | EV/EBITDA multiple |
| Comparability | Compare companies with different capital structures |
| Debt capacity | Debt/EBITDA ratio |
| Cash flow proxy | Estimate operating cash generation |
Considerations
- Capital intensive industries: EBITDA may overstate cash flow
- Negative EBITDA: Company is operationally unprofitable
- Growing EBITDA: Sign of operational improvement
Parameters
| Parameter | Description |
|---|---|
| Symbol | Stock ticker symbol |
Examples
When to Use
- Calculate EV/EBITDA valuation multiple
- Compare profitability across different industries
- Assess debt capacity and coverage
- Screen for operationally profitable companies
- M&A analysis
When NOT to Use
| Scenario | Use Instead |
|---|---|
| Need net income | EarningsPerShare() |
| Need actual cash flow | Operating cash flow functions |
| Need per-share metric | CashFlowPerShare() |
| Need historical data | Historical fundamental functions |
Common Issues & FAQ
Q: Why is EBITDA returning "NA"? A: Check that:
- The symbol is valid
- The company has reported financial statements
- Financial data is available for the symbol
Q: Why is my EBITDA very large? A: EBITDA is returned as the total dollar amount (not per share). Large companies have EBITDA in billions.
Q: Is this annual or TTM? A: This returns Trailing Twelve Months (TTM) EBITDA.
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