Wall St. Training Self-Study Instructor, Hamilton Lin, CFA explains the importance of EBITDA and EBIT as profitability and valuation metrics. EBITDA is perhaps one of the most importance terms, although not an official accounting statement item. When junior professionals ask "why EBITDA", all too often, the reply is "that's just the way it is". We explain the "why" in easy to understand terms and dig into the detail of such important terms.