StockEdge.com
  • Products
    • StockEdge Premium
    • StockEdge Pro
    • StockEdge Club
    • Compare Plans
StockEdge Blog
  • Trending Stocks
  • Insights
    • All
    • Business Houses
    • Markets themes
    • Stock Insights
    Top 5 Textile stocks

    Top 5 Textile Stocks in India: From Cotton to Cash

    multi-bagger stocks for 2025

    5 Multibagger Stocks to keep an eagle-eye for 2025

    Jindal Saw – Strong Earnings Momentum Ahead

    Jindal Saw – Strong Earnings Momentum Ahead

    Kirloskar Group- A Legacy of 134 Years

    Kirloskar Group- A Legacy of 134 Years

    renewable energy stocks in india

    Top Renewable Energy Stocks in India

    blue chip stocks

    Top 5 Blue Chip Stocks to Buy and Invest in 2023

    Budget 2023: Stocks to keep an eye on

    Budget 2023: Stocks to keep an eye on

    Adani Enterprises FPO: Detailed Analysis, GMP and Review?

    Adani Enterprises FPO: Detailed Analysis, GMP and Review?

    Top 5 Defence Stocks to Invest in India

    Top 5 Defence Stocks to Invest in India

  • Technical Analysis
    Chart Patterns – Holy grail of Stock Market Analysis

    Chart Patterns – Holy grail of Stock Market Analysis

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Beat the street with Sector Rotation Strategy

    Beat the street with Sector Rotation Strategy

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Derivative Analytics

    An Insightful Research Tool For Derivative Analytics

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    Introducing Put-Call Ratio a Derivative Indicator in the Market

    A Powerful Technical Indicator Beta & Beta Scans

    A Powerful Technical Indicator Beta & Beta Scans

    Technical Analysis using Edge Charts

    Technical Analysis using Edge Charts

    adaptive relative strength and static relative strength scans

    What is Adaptive Relative Strength & Static Relative Strength Scans?

  • Fundamental Analysis
    • All
    • Cash Flow Ratios
    • Efficiency ratios
    • Growth Ratios
    • Liquidity Ratios
    • Return Ratios
    • Solvency ratios
    • Valuation Ratios
    high dividend paying stocks

    Identifying High Dividend Paying Stocks

    Understanding the Importance of creating Fundamental Scans

    Understanding the Importance of creating Fundamental Scans

    Using My Combination Scan to Identify best in an Industry

    Using My Combination Scan to Identify best in an Industry

    Cost Income ratio

    Cost to Income Ratio(%)

    Cost of Liability

    Cost of Liabilities (%)

    Operating Cost to Assets Ratio (%)

    Operating Cost to Assets Ratio (%)

  • StockEdge Tutorials
    StockEdge Club: An Exclusive Investors Hub & Analytics platform

    StockEdge Club: An Exclusive Investors Hub & Analytics platform

    FII/DII Data: Leading Indicators of Stock Market

    FII/DII Data: Leading Indicators of Stock Market

    Chart Patterns – Holy grail of Stock Market Analysis

    Chart Patterns – Holy grail of Stock Market Analysis

    StockEdge Version Update : 9.0

    StockEdge Version Update : 9.0

    Powerful Investment Themes for Retail Investors

    Powerful Investment Themes for Retail Investors

    Beat the street with Sector Rotation Strategy

    Beat the street with Sector Rotation Strategy

    StockEdge Version Update 8.3

    StockEdge Version Update 8.3

    StockEdge Version Update 8.2

    StockEdge Version Update 8.2

    Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

    Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

  • Mutual Fund
    Top 5 Mutual Funds for 2022 where you can start your SIP

    Top 5 Mutual Funds for 2022 where you can start your SIP

    What are Value Funds and its Advantages?

    What are Value Funds and its Advantages?

    thematic funds

    Thematic Funds : Everything you need to know

    Understanding Sector Funds and their Benefits to our Portfolio

    Understanding Sector Funds and their Benefits to our Portfolio

    Are Dividend Yield Funds a good option to invest in?

    Are Dividend Yield Funds a good option to invest in?

    What are Contra Funds and their advantages?

    What are Contra Funds and their advantages?

    Trending Tags

    No Result
    View All Result
    • Trending Stocks
    • Insights
      • All
      • Business Houses
      • Markets themes
      • Stock Insights
      Top 5 Textile stocks

      Top 5 Textile Stocks in India: From Cotton to Cash

      multi-bagger stocks for 2025

      5 Multibagger Stocks to keep an eagle-eye for 2025

      Jindal Saw – Strong Earnings Momentum Ahead

      Jindal Saw – Strong Earnings Momentum Ahead

      Kirloskar Group- A Legacy of 134 Years

      Kirloskar Group- A Legacy of 134 Years

      renewable energy stocks in india

      Top Renewable Energy Stocks in India

      blue chip stocks

      Top 5 Blue Chip Stocks to Buy and Invest in 2023

      Budget 2023: Stocks to keep an eye on

      Budget 2023: Stocks to keep an eye on

      Adani Enterprises FPO: Detailed Analysis, GMP and Review?

      Adani Enterprises FPO: Detailed Analysis, GMP and Review?

      Top 5 Defence Stocks to Invest in India

      Top 5 Defence Stocks to Invest in India

    • Technical Analysis
      Chart Patterns – Holy grail of Stock Market Analysis

      Chart Patterns – Holy grail of Stock Market Analysis

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Beat the street with Sector Rotation Strategy

      Beat the street with Sector Rotation Strategy

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Derivative Analytics

      An Insightful Research Tool For Derivative Analytics

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      Introducing Put-Call Ratio a Derivative Indicator in the Market

      A Powerful Technical Indicator Beta & Beta Scans

      A Powerful Technical Indicator Beta & Beta Scans

      Technical Analysis using Edge Charts

      Technical Analysis using Edge Charts

      adaptive relative strength and static relative strength scans

      What is Adaptive Relative Strength & Static Relative Strength Scans?

    • Fundamental Analysis
      • All
      • Cash Flow Ratios
      • Efficiency ratios
      • Growth Ratios
      • Liquidity Ratios
      • Return Ratios
      • Solvency ratios
      • Valuation Ratios
      high dividend paying stocks

      Identifying High Dividend Paying Stocks

      Understanding the Importance of creating Fundamental Scans

      Understanding the Importance of creating Fundamental Scans

      Using My Combination Scan to Identify best in an Industry

      Using My Combination Scan to Identify best in an Industry

      Cost Income ratio

      Cost to Income Ratio(%)

      Cost of Liability

      Cost of Liabilities (%)

      Operating Cost to Assets Ratio (%)

      Operating Cost to Assets Ratio (%)

    • StockEdge Tutorials
      StockEdge Club: An Exclusive Investors Hub & Analytics platform

      StockEdge Club: An Exclusive Investors Hub & Analytics platform

      FII/DII Data: Leading Indicators of Stock Market

      FII/DII Data: Leading Indicators of Stock Market

      Chart Patterns – Holy grail of Stock Market Analysis

      Chart Patterns – Holy grail of Stock Market Analysis

      StockEdge Version Update : 9.0

      StockEdge Version Update : 9.0

      Powerful Investment Themes for Retail Investors

      Powerful Investment Themes for Retail Investors

      Beat the street with Sector Rotation Strategy

      Beat the street with Sector Rotation Strategy

      StockEdge Version Update 8.3

      StockEdge Version Update 8.3

      StockEdge Version Update 8.2

      StockEdge Version Update 8.2

      Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

      Using Investor Portfolios Section to track Big Bulls like Rakesh Jhunjhunwala

    • Mutual Fund
      Top 5 Mutual Funds for 2022 where you can start your SIP

      Top 5 Mutual Funds for 2022 where you can start your SIP

      What are Value Funds and its Advantages?

      What are Value Funds and its Advantages?

      thematic funds

      Thematic Funds : Everything you need to know

      Understanding Sector Funds and their Benefits to our Portfolio

      Understanding Sector Funds and their Benefits to our Portfolio

      Are Dividend Yield Funds a good option to invest in?

      Are Dividend Yield Funds a good option to invest in?

      What are Contra Funds and their advantages?

      What are Contra Funds and their advantages?

      Trending Tags

      No Result
      View All Result
      StockEdge Blog
      Home Tutorials
      EBIDTA Margin Stockedge

      EBITDA Margin – Definition, Formula & Example

      StockEdge by StockEdge
      October 22, 2018
      Reading Time: 3 mins read
      2.5k
      VIEWS
      Share on FacebookShare on TwitterShare On WhatsApp

      Table of Contents

      • EBITDA Margin (%)
      • Importance of EBITDA Margin (%)
      • EBITDA Margin Formula:
      • EBITDA Margin Example:
          • See also: EBITDA Growth (%)
      • Bottomline

      While investing in the company, one should look at the efficiency ratios, one such ratio is EBITDA Margin. Efficiency Ratios are an important parameter under fundamental analysis which helps to analyze numerical values present in a company’s financial statements. Efficiency ratios are used to analyze how well the company is using its assets to generate returns. It is used to measure the performance of the company, current, and past. We will discuss the impact of EBITDA margin on financial valuation.

      Some of the important ratios are as follows:-

      EBITDA Margin (%)

      EBITDA (%) is an important parameter to measure a company’s operating profitability, expressed in the terms of percentage of its total revenue. It is calculated as earnings before interest, tax, depreciation, and amortization (EBITDA) divided by total revenue. An EBITDA margin helps an investor, business owner, or financial professional with an easy to perceive the company’s cash flow and operating profitability.

      You can also watch the below video on Everything you want to know about EBITDA Margin:

      Importance of EBITDA Margin (%)

      EBITDA Margin is used to compare companies of different market capitalization and sectors because it breaks down operating profits in terms of percentage of revenue. A higher EBITDA is considered good as it signifies less operating expenses and higher company earnings. A rise in EBITDA also signifies the better performance of the company.

      EBITDA Margin Formula:

      Formula: EBITDA/Revenue

      EBITDA Margin Formula

      EBITDA Margin Example:

      Suppose in 2016-17 the company sales is 50 crores and expenses excluding interest tax and depreciation or amortization are 45 crores then EBITDA is 5 crores

      EBITDA margin % = 5/50= 10%.

      Nowadays we don’t have to calculate EBITDA(%) on our own. StockEdge gives us EBITDA(%) of the last five years of any company listed in the stock exchange. We can look at and compare the EBITDA(%) of any company and filter out stocks accordingly.

      Suppose we want to look at the EBITDA(%) of Suven Life Sciences Ltd. for the last 5 years. In the Fundamental tab of Suven Life Sciences Ltd, click on the fundamentals tab, we will get the Ratios tab.  Then in the Ratios tab click on Efficiency Ratios, EBITDA(%) will come from Suven Life Sciences Ltd.

      See also: EBITDA Growth (%)

      Bottomline

      EBITDA margin thus helps investors in making decisions in which company to invest by comparing the performance of the company with its peers. This data is easily available under the ratios section of each share for free. We also have scans based on EBITDA under the premium offering of StockEdge app, with the help of these you can filter out companies generating increasing EBITDA in seconds. If you still do not have the StockEdge app, download it right now to use this feature.

      Click here to know more about the Premium offering of StockEdge.

      You can check out the desktop version of StockEdge using this link.

      Tags: EBITDAEBITDA MarginEfficiency Ratiosmarket capitalisationoperating profitabilityStockEdge
      ShareTweetSend
      Subscribe On Telegram Subscribe On Telegram Subscribe On Telegram
      Previous Post

      PAT Margin(%): Definition, Impact & Formula

      Next Post

      What is EBIT Margin(%)

      StockEdge

      StockEdge

      StockEdge is a self-help Equity and Mutual Fund research tool. It empowers retail investors to identify investment opportunity with all the necessary data and analytics.

      Next Post
      EBIT Stockedge

      What is EBIT Margin(%)

      EPS Growth % Stockedge

      Earnings per Share Growth (%)

      Net Profit Growth Stockedge

      Net Profit Growth (%)

      Leave a Reply Cancel reply

      Your email address will not be published. Required fields are marked *

      Contact Us
      • Timing (Mon-Sat): 10 am to 7 pm
      • Sales: +919830994463
      • Support: +919830994402
      • Club Support: +916289906895
      • Affiliate: +917003567131
      Recent Posts
      Top 5 Textile stocks
      Top 5 Textile Stocks in India: From Cotton to Cash
      multi-bagger stocks for 2025
      5 Multibagger Stocks to keep an eagle-eye for 2025
      Important Links
      • StockEdge.com
      • StockEdge Premium
      • - Quarterly Membership
      • - Annual Membership
      • StockEdge Analyst
      • StockEdge Club
      • Compare Plans
      An Initiative Of

      © 2023 Kredent InfoEdge Pvt Ltd.

      Facebook-f Twitter Instagram Linkedin-in Youtube Pinterest-p

      Get StockEdge App

      No Result
      View All Result
      • Home
      • Article Categories
        • Fundamental Analysis
        • Technical Analysis
        • Market Themes
        • StockEdge Tutorials
        • StockEdge Version Updates
      • Products
        • StockEdge Premium
        • StockEdge Pro
        • StockEdge Club
        • Compare Plans
      • Visit StockEdge.com

      © 2023 Kredent InfoEdge Pvt Ltd.