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Adjusted EBITDA

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Definition of Adjusted EBITDA

Adjusted EBITDA Image 1

Adjusted EBITDA

Conventional earnings before interest, taxes, depreciation, and amortization (ebitda) revised to exclude the effects of mainly nonrecurring items of revenue or gain and expense or loss.




Related Terms:

Defined EBITDA

A measure of ebitda that is outlined or defined in a debt or credit agreement.
Also see adjusted ebitda and recurring ebitda.


Recurring EBITDA

The standard ebitda with the effects of nonrecurring items removed.
Comparable to adjusted ebitda.


Adjusted Cash Flow Provided by Continuing Operations

Cash flow provided by operating
activities adjusted to provide a more recurring, sustainable measure. Adjustments to reported cash
provided by operating activities are made to remove such nonrecurring cash items as: the operating
component of discontinued operations, income taxes on items classified as investing or financing activities, income tax benefits from nonqualified employee stock options, the cash effects of purchases and sales of trading securities for nonfinancial firms, capitalized expenditures, and other nonrecurring cash inflows and outflows.


Adjusted Earnings

Net income adjusted to exclude selected nonrecurring and noncash items of reserve, gain, expense, and loss.


Adjusted Income from Continuing

Operations Reported income from continuing operations
adjusted to remove nonrecurring items.


Adjusted present value (APV)

The net present value analysis of an asset if financed solely by equity
(present value of un-levered cash flows), plus the present value of any financing decisions (levered cash
flows). In other words, the various tax shields provided by the deductibility of interest and the benefits of
other investment tax credits are calculated separately. This analysis is often used for highly leveraged
transactions such as a leverage buy-out.


Earnings before interest, taxes, depreciation and amortization (EBITDA)

The operating profit before deducting interest, tax, depreciation and amortization.


Adjusted EBITDA Image 2

Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA)

An earningsbased measure that, for many, serves as a surrogate for cash flow. Actually consists of working
capital provided by operations before interest and taxes.


EBITDA

Earnings before interest, taxes, depreciation, and amortization.


EBITDA Margin

ebitda divided by total sales or total revenue.


EBITDAR

Earnings before interest, taxes, deprecation, amortization, and rents.



Net adjusted present value

The adjusted present value minus the initial cost of an investment.


Option-adjusted spread (OAS)

1) The spread over an issuer's spot rate curve, developed as a measure of
the yield spread that can be used to convert dollar differences between theoretical value and market price.
2) The cost of the implied call embedded in a MBS, defined as additional basis-yield spread. When added to the
base yield spread of an MBS without an operative call produces the option-adjusted spread.


Risk-adjusted

return Return earned on an asset normalized for the amount of risk associated with that asset.


risk-adjusted discount rate method

a formal method of adjusting for risk in which the decision maker increases the rate used for discounting the future cash flows to compensate for increased risk


Risk-adjusted profitability

A probability used to determine a "sure" expected value (sometimes called a
certainty equivalent) that would be equivalent to the actual risky expected value.



 

 

 

 

 

 

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