EBITDA margin
The share of revenue that remains at the EBITDA level.
Formula
\text{EBITDA margin} = \frac{EBITDA}{\text{Revenue}}Trailing twelve-month EBITDA over revenue for the same period. Stored as a fraction.
How to read the number
Measures the efficiency of the core business stripped of capital structure and taxes.
When the metric lies
It inherits every weakness of EBITDA: a capital-intensive business with a superb EBITDA margin can still return nothing to its owner.
Where it is used
The metric is calculated across every security in the catalogue and appears on the instrument card, in the multiples table and in the screener.
Also known as: ebitda margin