EBITDA Margin Calculator
From EBITDA and revenue, compute the EBITDA margin — core operating cash profitability per revenue dollar.
Input Data
Results
At a glance:EBITDA margin = EBITDA / revenue x 100%. It adds back depreciation/amortisation vs operating margin, closer to cash generation and more comparable across asset structures/policies. Excludes interest/tax for operating comparison across capital structures. WARNING: Ignores capex consumption — overstates profit for asset-heavy firms; not a substitute for net income/FCF; cross-industry limited. Education, not advice.
Formula
EBITDA margin = EBITDA / revenue x 100%.
How to Use
- Enter EBITDA.
- Enter total revenue.
- View the EBITDA margin.
FAQ
How is EBITDA margin different from operating margin?
Operating margin's numerator is operating profit (EBIT, after depreciation/amortisation); EBITDA margin adds those non-cash items back, so it is usually higher and closer to cash. For asset-heavy firms the gap is large; view both to see capex's profit impact.
Why is EBITDA margin used in valuation?
It removes interest (capital structure), tax (regime) and depreciation/amortisation (policy, historical capex) effects, enabling fair operating comparison and EV/EBITDA multiples. But since it ignores capex, pair with free cash flow.
Does a high EBITDA margin mean the firm is profitable?
Not necessarily. EBITDA adds back depreciation/amortisation; for firms needing heavy ongoing investment (telecom, infrastructure), capex is the real long-term cost. High EBITDA margin minus capex and interest/tax may leave little or a loss. It reflects operating cash profitability; final profit needs net income and FCF.
Which HK industries have high EBITDA margins, and what is good?
No universal 'good' — compare with peers and history. Software/platforms, telecom, toll infrastructure, some utilities can reach 30%-50%+ from scale/pricing power; retail, F&B, trading may be single digits to ~15%. Watch the trend (rising = improving) and relative peer position, not the absolute number; cross-industry comparison is limited.
Why EV/EBITDA instead of P/E?
EV/EBITDA uses enterprise value (equity + net debt) over EBITDA, removing capital-structure, tax and depreciation-policy effects so firms with different debt/tax/depreciation compare on a common basis and are less distorted by one-off non-cash items — widely used in M&A, LBO and cross-market comparison. P/E uses net income and price, affected by interest, tax and depreciation. Both have uses: EV/EBITDA for overall operating valuation, P/E for shareholder earnings; often referenced together.
Related Tools
References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.