EBITDA margin measures operating profitability before interest, taxes, depreciation, and amortization. It is commonly used to compare operating performance before capital structure and some accounting differences.
Formula
EBITDA margin = EBITDA / Revenue
EBITDA margin is useful for valuation and credit analysis, but it should be paired with free cash flow and capital intensity. Compare sector ranges in EBITDA margin by industry.
Related calculator: EBITDA Margin Calculator.