Stock Club Learning
What Is EBITDA? Formula and Interpretation
EBITDA means earnings before interest, taxes, depreciation and amortization. It can support earnings comparisons, but definitions vary, and it does not account for capital expenditure or changes in working capital.
EBITDA formula
Stock Club EBITDA = operating income + depreciation/amortization + goodwill amortization
The general concept adds taxes, interest, depreciation and amortization back to net income. Our Japanese data starts from operating income, so non-operating items and other definition differences can make it differ from the general definition or company-reported figures.
Calculate EBITDA
Uses Stock Club’s operating-income-based method. Do not count amortization items twice.
Result
140.00 JPY million
A simplified calculation. Align periods, consolidation scope and units.
Stock Club Data
Japanese trailing EBITDA distribution and medians
Price date: 2026-09-11
Trailing EBITDA median
¥2.87B
Trailing 12 months; equally weighted
Interquartile range
¥709.29M – ¥10.97B
Range containing the middle 50% of stocks
Stocks with valid data
3,583 / 3,959
376 missing or excluded
Stocks with negative values
236
6.6% of valid observations
Trailing EBITDA distribution
Amounts depend on company size. The median is not a quality or valuation threshold. Ranges include the lower bound and exclude the upper bound.
Median trailing EBITDA by sector
Sectors with at least 10 valid observations. Amounts also reflect the size of firms within each sector.
Examples from large-cap stocks
Actual data for stocks with valid observations, not a recommendation ranking.
How to interpret EBITDA
Separate size and profitability
A larger EBITDA does not necessarily mean greater efficiency. Also compare EBITDA as a percentage of sales.
Compare the same definition
Check whether calculations start from operating or net income, and align amortization and adjustment items.
Explain the trend
Separate revenue growth, cost changes and acquisition effects. Growth in the amount alone does not establish earnings quality.
Review cash flows too
Review capital expenditure, working capital, taxes and interest payments separately. Positive EBITDA does not guarantee increasing cash.
EBITDA margin, operating profit and enterprise value
EBITDA margin = EBITDA ÷ revenue × 100
This uses revenue from the same period. It helps normalize company size, but differences in industry, investment requirements and accounting remain.
EV/EBITDA is a separate valuation measure
EBITDA is an earnings amount; EV/EBITDA divides enterprise value by that amount. Conventional multiple comparisons are unsuitable when EBITDA is zero or negative.
Caveats when using EBITDA
It is not cash flow
It does not fully represent receivables, inventory, capital investment, or tax and interest payments. Review operating and investing cash flows.
Distinguish adjusted EBITDA
Adjusted EBITDA can remove additional items such as share-based compensation or one-off costs. Read each company's reconciliation and definition.
Depreciation still matters
Depreciation may be non-cash in the current period, but assets still require replacement. Avoid overstating the economics of capital-intensive firms.
Accounting and sector differences
Lease and goodwill accounting affect the result. Interest is integral to financial businesses, limiting comparisons with industrial companies.
How Stock Club calculates and aggregates EBITDA
- We display trailing-12-month EBITDA. Standalone quarters and year-to-date values are not substituted for TTM.
- Japanese data adds depreciation/amortization and goodwill amortization to operating income. This is distinct from company-specific adjusted EBITDA.
- Observations lacking required depreciation data are excluded. Negative and zero amounts remain valid observations.
- Amounts are in JPY. Representative margins equal EBITDA divided by positive TTM revenue from the same period, multiplied by 100.
- The universe is active Japanese equities with prices, excluding ETFs and REITs.
- Medians and quartiles are equally weighted. Sector tables require at least 10 stocks; representatives are selected by market capitalization among valid observations.
Data updates as filings and revisions are reflected. Fiscal periods vary across companies. Figures provide reference information for comparison on a consistent basis.
EBITDA FAQ
What does EBITDA stand for?
It stands for Earnings Before Interest, Taxes, Depreciation and Amortization.
Is EBITDA the same as operating income?
No. Our method adds depreciation/amortization and goodwill amortization to operating income, and it can differ from a net-income-based calculation.
Does positive EBITDA guarantee sufficient cash?
No. Working capital increases, capital investment, debt repayment, taxes and interest can still reduce cash.
How does adjusted EBITDA differ?
Adjusted EBITDA adds or removes further company-defined items. Review the definition and reconciliation to reported earnings because adjustments vary.
Is EBITDA above the median necessarily better?
No. Absolute amounts depend on company size. Review peer margins, history, investment needs and cash flows together.