Intro to Business Valuations Part 4 What is EBITDA? EBITDA = Earnings Before Interest, Taxes, Depreciation & Amortization. It shows operational profitability, excluding financing or tax effects. People often use EBITDA to evaluate the true earning power of a business. It's one more thing to know and consider as you decide on the business that you want to buy. At Spokane Business Attorneys, we help people buy, sell, and start businesses without making expensive mistakes. Part of due diligence is