EBITDA stands for Earnings Before Interest Tax Depreciation Amortization, and measures the overall financial performance of a company. Or better put, EBITDA measures a company's profitability.
EBITDA = Net Income + Interest + Taxes + Depreciation + Amortization
Why is it important?
It is said that "EBITDA offers a clearer reflection of operations by stripping out expenses that can obscure how the company is really performing."