EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial metric that measures a company's profit before accounting for interest, taxes, depreciation, and amortization. EBITDA provides an insight into a company's operational performance and its ability to generate profit from core business activities without the impact of non-operational costs and accounting practices. This metric is often used to compare the performance of different companies.
- Financial dictionary
EBITDA
EBITDA
Related terms
| Term | Definition |
|---|---|
| Equity | Equity is the ownership stake in a company, representing the value of the company’s assets after subtracting its liabilities. It is the amount owned by shareholders or owners and reflects the difference between the company’s total assets and its total liabilities. In the context of stocks, equity represents the value of a shareholder's ownership in the company. For individuals or households, equity can refer to the ownership value in real estate, i.e., the property value minus any mortgage or other liabilities. |
| Equity fund | An equity fund is a type of mutual fund that invests most of its assets in company stocks. The goal of an equity fund is to achieve investment growth through stock appreciation, either in the form of capital gains (increase in stock prices) or dividends (profit distributions by companies). This type of fund can be focused on specific industries, regions, or company sizes. |
| ESG | ESG (Environmental, Social, and Governance) criteria assess companies based on their environmental, social, and governance practices. Environmental factors relate to a company's impact on the environment, such as greenhouse gas emissions, resource usage, and waste management. Social factors focus on a company's relationships with employees, customers, and communities, including labor conditions, equality, and diversity support. Governance factors concern the way a company is managed, including ethics, transparency, risk management, and leadership. Investors and companies increasingly consider ESG criteria when making investment decisions, as these factors can impact a company's long-term sustainability and performance. |
| ETF | An ETF (Exchange-Traded Fund) is an investment fund that trades on a stock exchange, similar to stocks. ETFs typically contain various assets, such as stocks, bonds, or commodities, and allow investors to buy and sell shares during trading hours. This type of fund provides diversification, as it contains a portfolio of different investments, thereby spreading the risk. ETFs are also liquid, meaning their shares can be traded anytime during the trading day, and they usually have lower fees compared to actively managed funds. There is a wide range of ETFs covering different markets, sectors, and investment strategies. |
| Financial advisor | A financial advisor is a professional who provides clients with advice on money management, investments, and financial planning to help them achieve their financial goals. They offer their services for a fee, often based on commission or assets under management. |