Earnings before interest, tax and amortisation (EBITA) is similar to EBIT but strips out amortisation. Amortisation is always a non-cash item and therefore of limited interest to investors.

Amortisation is of less interest than depreciation (itself excluded from many measures) because it relates to intangible assets, and it cannot be used as even a rough proxy for replacement cost.

EBITA is used in similar ways to other profit measures such as EBITDA. The commonest valuation ratio that uses EBITA is EV/EBITA. This is similar to EV/EBITDA apart from the inclusion of depreciation as a cost. EV/EBITDA is usually preferable.