EBITDA provides a clearer picture of a company’s core profitability. This formula focuses exclusively on income generated from a company’s core operational activities while excluding expenses ...

It is also often used as a proxy to cash flows. Typically, the lower the EV-to-EBITDA ratio, the more enticing it is. A low EV-to-EBITDA ratio could indicate that a stock is undervalued.

Dairy heavyweight Saputo has “withdrawn” a key EBITDA target but suggested a new milk-pricing formula in the US would bring an additional profit benefit. “Market conditions have not ...