EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) margin provides an investor with a clean view of the core operating profitability of a business. It is a financial metric used to compare valuations in most industries. EBITDA varies from industry to industry and business to business. It is calculated as follows:
EBITDA = Profit + Depreciation & Amortization + Taxes + Interest Expense – Non-Operating income + Non-operating expenses
EBITDA Margin = EBITDA / Operating Revenue