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This chart plots the historical and forecasted trends in EBITDA
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EBITDA
, Earnings before Interest, Taxes, Depreciation, and Amortization is a common measure of profitability, as it removes the effects of interest payments from financing, political jurisdictions (before tax), capital expenditures (before depreciation of assets), and different spending on intangible assets (before amortization expense).
Strong forecasted EBITDA growth is usually rewarded by the market with higher valuation multiples
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