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 |
Syntax
=EBITDA(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
Why is EBITDA returning "NA"?
Check that:
- The symbol is valid
- The company has reported financial statements
- Financial data is available for the symbol
Why is my EBITDA very large?
EBITDA is returned as the total dollar amount (not per share). Large companies have EBITDA in billions.
Is this annual or TTM?
This returns Trailing Twelve Months (TTM) EBITDA.
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