EBITDA Margin
EBITDA margin expresses earnings before interest, taxes, depreciation, and amortization as a percentage of revenue.
EBITDA margin is calculated by dividing EBITDA by revenue and expressing the result as a percentage. It helps compare operating profitability across businesses of different sizes. The comparison is meaningful only when the business models and accounting bases are sufficiently similar.
Example
Revenue of EUR 8.0 million and EBITDA of EUR 0.8 million give an EBITDA margin of 10%.
EBITDA margin expresses earnings before interest, taxes, depreciation, and amortization as a percentage of revenue.