EBITDA margin (EBITDA mgn)
Revenue left after operating costs but before depreciation, amortisation, interest and tax.
It is the standard comparison basis in leveraged and capital-intensive industries.
How it is computed here
EBITDA / revenue x 100
Measured over the latest complete fiscal year, as filed. Filed under quality. Higher is the stronger reading, other things equal.
No published threshold exists for this figure, so this page prints none. Read it against the company's own history and its peers instead.
When it misleads
- It excludes the cost of the assets wearing out, which for anything capital-heavy is a real and recurring expense.
- There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.
Questions
How is ebitda margin calculated?
EBITDA / revenue x 100. Measured over the latest complete fiscal year, as filed.
What does ebitda margin tell a value investor?
It is the standard comparison basis in leveraged and capital-intensive industries.
When does ebitda margin mislead?
It excludes the cost of the assets wearing out, which for anything capital-heavy is a real and recurring expense. There is no cross-industry threshold worth printing. The peer percentile against companies in the same industry is the only defensible reading.