EBITDA Calculator (Earnings Before Interest, Tax, Depreciation & Amortization)
From EBIT plus depreciation and amortisation, compute EBITDA — a cash-closer proxy for operating earnings.
Input Data
Results
At a glance:EBITDA = EBIT + depreciation + amortisation. It adds back non-cash depreciation/amortisation to approximate operating cash, widely used for cross-company comparison (asset-heavy) and valuation (EV/EBITDA). WARNING: It ignores capex (asset replacement) and working capital, so for asset-heavy firms it overstates sustainable cash; not free cash flow. Read with capex, FCF and net income. Education, not advice.
Formula
EBITDA = EBIT + depreciation + amortisation.
$$\text{EBITDA} = \text{EBIT} + \text{Depreciation} + \text{Amortization}$$$$\text{EV/EBITDA} = \dfrac{\text{Enterprise Value}}{\text{EBITDA}}$$How to Use
- Enter EBIT (operating profit before interest and tax).
- Enter depreciation and amortisation.
- View EBITDA.
FAQ
Why add back depreciation and amortisation?
They are non-cash accounting expenses (spreading past asset costs) with no actual cash outflow. Adding them back makes EBITDA closer to operating cash, easing comparison across firms with different depreciation policies/assets, and serves as the base for EV/EBITDA.
Is higher EBITDA always better?
No. It ignores that assets must eventually be replaced (capex); for asset-heavy firms, high EBITDA with huge capex can leave thin free cash flow. Read with capex, free cash flow and net income.
Is EBITDA equal to cash flow?
No. It only adds back depreciation/amortisation, not the capex needed to maintain operations, nor working-capital changes, nor actual interest/tax cash. Free cash flow (FCF) is the proper 'usable cash' measure; EBITDA is just an approximate starting point.
How is EV/EBITDA used for valuation?
EV/EBITDA = enterprise value (equity market cap + net debt) / EBITDA — how many years of EBITDA to 'pay back' the firm at today's price. It is capital-structure and depreciation neutral, good for cross-company/M&A comparison. Lower often cheaper, but consider growth and industry; high-growth sectors command higher multiples.
Where can I find a HK listed company's EBITDA?
HKEX-listed firms file interim/annual reports under the Listing Rules. EBITDA may not be directly shown, but compute it from operating profit (EBIT) plus depreciation/amortisation in the notes. HKEXnews is the authoritative free source for the original filings.
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References
Content review: Calculatorism Finance Team. Results are for reference only; please refer to the relevant authorities for the official figures.