EBITDA-Earnings before Interest, Tax, Depreciation and Amortization
This is one of the most sort out data point for all the traders or investors to take a plunge into stocks of any company. EBITDA is self explanatory; it means that the Earnings that are taken into consideration well before paying out any expenses. General understanding is that companies only have rents and salaries as expenses but that’s actually a myth. Interests on Loans for business, Taxes on earnings etc are also one of the biggest expenses that a company needs to pay. EBITDA does not include these expenses into its calculations and hence not accounting for the costs which do not impact its core operations .The traders use this as a tool to compare two business models. Reason being a retail business or acorporate business might have different expenses and hence it will be difficult to analyze if investing in the retail or manufacturing business would be easy. But if the expenses are not considered then it makes the data so simple that taking investment decisions bec...