EBITDA Margin is a measure of a company's operating profitability as a percentage of its total revenue. EBITDA stands for 'Earnings Before Interest, Taxes, Depreciation, and Amortization.' By stripping away non-cash accounting items and financing costs, EBITDA Margin provides a clear look at the raw 'Earnings Power' of the company's core operations. It is the industry-standard metric for comparing the financial health of companies with different capital structures or tax situations. For mature businesses, a high EBITDA margin indicates a lean, well-run machine that generates significant cash flow. For high-growth startups, EBITDA is often negative as they reinvest every dollar into expansion, but investors still look for 'Path to Profitability' by monitoring how the margin improves as the company scales. It is the primary metric used in business valuations and is often the basis for the 'Multiple' applied during an acquisition or private equity buyout.