EBITDA and Net Margin

EBITDA stands for earnings before interest, taxes, depreciation and amortization. It is the profit before subtracting expenses associated with interest on debt, taxes to the government and depreciation and amortization expenses related to the reduction in value of the assets.

Whereas Net profit margin is a profitability ratio that calculates how much percentage of the company's profit is left after deducting all the expenses.

If you are looking for stock investment, it's important to have high EBIDTA margin and net margin trends across the year. You should compare with companies across same industries or business model to ensure your business has competitive advantage.