EBITDA is short for Earnings Before Interest, Taxes, Depreciation and Amortization. It is one of the most widely used measures of a company’s financial health. It is a clean picture of the core profit of a practice, and used as an "apples to apples" comparison for valuation. In short, EBIDTA is the universal measuring stick for practice valuation. EBITDA is not simply your net profit of your practice.