EBITA stands for earnings before interest, taxes, and amortization. It is a measure of profitability for investors.[i] This might matter to you if you find other comparable companies’ EBITA and compare your EBITA against theirs. This would give you an idea of how your business is doing compared to competitors. Some analysts use EBITA to estimate a company’s value. One simple method is to use a multiple (a number) and multiply it times EBITA to determine value. The multiples differ by industry and type of businesses within the industry.
[i] Investopedia. Investopedia, n.d. https://www.investopedia.com/