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Definition of 'Earnings Before Interest, Tax, Amortization And Exceptional Items - EBITAE'
An accounting metric often used to deduct the amortization of intangible assets to arrive at a value. Companies will use EBITAE not only as a measure of performance, but also to determine interest coverage capabilities. The eliminated items are often seen as factors that distort earnings that are derived from the underlying business operations of a firm.
Calculated as:
Where expenses* represents expenses that exclude interest, taxes, amortization of intangible assets and exceptional items.
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