ebitda is not a poor metric for a stable business like duracell because interest charges (the most suspect component of ebitda) are not going to be wildly outside industry norms. it's also an interesting metric in general because it seeks to normalize true operating earning power across businesses if all other things were equal (tax rates, interest charges, fixed asset related charges).
if you're evaluating a business and they tout ebitda as the only thing you should care about, you should look at net income in relation to it. for example, a mountain of debt or stupid financing terms would lead to high, maybe unsustainable, interest charges and ebitda would obscure the businesses' true circumstances. otherwise, it's reasonable to consider ebitda.
if you're evaluating a business and they tout ebitda as the only thing you should care about, you should look at net income in relation to it. for example, a mountain of debt or stupid financing terms would lead to high, maybe unsustainable, interest charges and ebitda would obscure the businesses' true circumstances. otherwise, it's reasonable to consider ebitda.