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Adjusted EBITDA

EBITDA from which the company has removed items it considers untypical: write-offs, one-off costs, revaluation effects and sometimes share-based pay.

How to read the number

The measure is entirely defined by its list of adjustments, disclosed in the release; without that list the figure is not comparable with anyone else's.

When the metric lies

There is no single methodology: one company excludes share-based pay, another does not. Adjustments almost always remove costs and almost never remove income.

Also known as: underlying ebitda

Related terms