What is EBITDA?

If you’re not familiar with the term EBITDA, don’t worry. EBITDA is actually pretty simple – it’s simply defined as – Earnings Before Interest, Taxes, Depreciation and Amortization.

With that in mind, you can pre-calculate your historical and projected EBITDA as follows:

+ Net Income (or Loss) from your Income Statement

+ Interest Expense (if any) from your Income Statement

+ Taxes (if any) from your Income Statement

+ Depreciation (if any) from your Income Statement or Cash Flow Statement

+ Amortization from your Income Statement or Cash Flow Statement