Formula
EBITDA / revenue.
What it means
The margin version of EBITDA lets you compare a large firm with a small one, and this year with last year, without the size of the sales line dominating the story.
It is widely quoted in infrastructure, telecom, hospitals, and other fields where depreciation is large and financing structures differ.
How to read it
A stable EBITDA margin through a growth spurt suggests the company is scaling without giving away price. A rising margin from cutting maintenance, rather than from price, will show up later as weaker free cash flow.
What to watch
Because depreciation is added back, EBITDA margin flatters asset-heavy firms relative to EBIT margin. Do not rank a mill and a software firm on EBITDA margin and call it the same achievement.
This note explains the term. It is not a research recommendation, a target price, or a comment on any security. Ratios and regulatory thresholds change; use the latest filing or circular for a live figure.