The EBITDA margin is a measure of a company's operating profit as a percentage of its revenue. The acronym EBITDA stands for earnings before interest, taxes, depreciation, and amortisation. Knowing the EBITDA margin allows for a comparison of one company's real performance to others in its industry.
EBITDA margin is calculated by dividing EBITDA by revenue and is a performance metric that measures a company's profitability from operations.