EBITDA Margin

EBITDA margin expresses EBITDA as a percentage of revenue, showing how much of every rupee or dollar of sales converts into core operating earnings.

EBITDA margin is widely used to benchmark operating efficiency across companies within the same industry, since it removes financing and accounting differences. A 25% EBITDA margin in a software business and a 25% EBITDA margin in a logistics business represent very different underlying economics, so cross-industry comparisons are far less meaningful than same-industry ones.