Today, we will talk about Adjusted EBITDA: Definition, Formula and How to Calculate. Adjusted EBITDA is a measure computed for a company that removes anomalies and makes it more easily comparable to the EBITDA of other companies. The formula involves calculating earnings before interest, taxes, depreciation, and amortization and adding or subtracting adjustments to arrive at the adjusted EBITDA figure. Adjusted EBITDA is used to assess and compare related companies for valuation analysis, and common EBITDA adjustments include non-recurring, irregular, and one-time items that may distort EBITDA.
942c
