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I wonder if somebody could translate from accounting-speak. What is EBITDA? Where does this PE multiple come from?


EBITDA = earning before interest, tax, depreciation and amortization, i.e. how much money is left after all usual expenditures are subtracted

PE = Price / Earnings ratio, an indicator which shows how aggressively a company is priced


EBITDA represents a company’s net earnings before subtracting expenses from interest payments, taxes, depreciation, and amortization.




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