---
title: "Definition of EBITDA %"
url: https://signalscreener.fr/definition/ebitda-margin/
markdown_url: https://signalscreener.fr/definition/ebitda-margin.md
description: "The percentage of revenue remaining as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization)."
type: glossary-definition
site: Signal Screener
language: en
keywords:
  - "EBITDA %"
  - "EBITDA Margin"
translations:
  de: https://signalscreener.fr/de/definition/ebitda-margin.md
  es: https://signalscreener.fr/es/definition/ebitda-margin.md
  fr: https://signalscreener.fr/fr/definition/ebitda-margin.md
---

# EBITDA Margin

## What is EBITDA %?

The percentage of revenue remaining as EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization).

## Think of it like this

Like measuring a store's operational profit before accounting for rent, taxes, and equipment wear - pure operating efficiency.

## Formula

```
EBITDA Margin = EBITDA ÷ Revenue × 100
```

- **EBITDA**: Operating profit before D&A, interest, taxes
- **Revenue**: Total sales

## Why it matters

- Shows operating efficiency independent of capital structure
- Useful for comparing companies with different debt levels
- Popular in M&A valuations
- Eliminates non-cash expenses

## What's a good value?

| Range | Rating | What it means |
|---|---|---|
| < 10% | Low | Thin margins, commodity business |
| 10-20% | Moderate | Average profitability |
| 20-30% | Good | Solid operating leverage |
| > 30% | Excellent | Strong competitive advantages |

## Real-world example

Software companies often have 30%+ EBITDA margins while retailers may only have 5-10%.

---

This is educational content, not financial advice.

Source: [Definition of EBITDA %](https://signalscreener.fr/definition/ebitda-margin/) on Signal Screener. Free to quote and cite with attribution and a link to that URL, which is the canonical one.

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