Earnings Before Interest Taxes Depreciation And Amortization (EBITDA) is a measure of business performance that takes into account the company’s profit before taking into account any financial costs, taxes, depreciation and amortization. By factoring out these components, EBITDA focuses on the core strength of the business in terms of profitability and growth potential—allowing investors to make quick, informed decisions about investing in a given business. Moreover, it can often be used to compare the performance of peer companies in the same industry. Ultimately, EBITDA provides a valuable tool for assessing the financial health of a company.