EBITDA

Also: earnings before interest, taxes, depreciation and amortization

EBITDA is earnings before interest, taxes, depreciation, and amortization — a measure of operating profitability that strips out financing and accounting decisions. Larger ecommerce businesses (roughly $5M+) are usually valued on an EBITDA multiple, while smaller ones use SDE.

Related terms

• Seller's Discretionary Earnings (SDE)
• Valuation multiple

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