Earnings Before Interest, Tax, Amortization And Exceptional Items (EBITAE)

Categories: Accounting, Fundamental Analysis,

A metric used to measure performance and determine the interest-paying ability of a company. The value is derived by deducting expenses that do not include interest, tax, amortization of intangible assets and exceptional items from the revenue. The purpose of EBITAE is to present the true earnings derived from the business operations of a company.