OIBDA

OIBDA (operating income before depreciation and amortisation) is very similar to EBITDA. OIBDA excludes non-operating profit, but this is usually small or non-existent.

Using the OIBDA rather than EBITDA arguably allows a better comparison of the underlying business. From a valuation point of view, any non-operating income or loss expected in the future does affect the value of the business (which, in this context, probably means enterprise value).

The difference between OIBDA and EBITDA is the same as that between operating profit and EBIT

OIBDA can be used in exactly the same way as EBITDA as a measure of profit to be compared to enterprise value, free from the distorting effects of capital structure, depreciation, and amortisation, but beware of what might be omitted (but you should also beware or what might be included in EBITDA).

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