The article penned by Efthymios Demirakos, an associate professor at the Athens University of Economics and Business, delves into one of the key accounting measures widely used in financial markets—EBITDA. This metric, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is often favored by financial analysts for stock valuation, investment proposals, and determining target prices. Settings such as mergers and acquisitions and private equity investments find EBITDA particularly useful in appraising companies targeted for acquisition. The text highlights how the EV/EBITDA (Enterprise Value to EBITDA) multiplier serves as a valuation model preferred by analysts due to its effectiveness in providing insights into the valuation processes for stocks. Furthermore, the article elaborates on how the EBITDA metric, when utilized within the EV/EBITDA multiplier framework, offers a significant advantage by isolating earnings from financial and tax influences, which can distort the monetary assessment of a firm's performance. Moreover, the article emphasizes the growing scrutiny in recent years surrounding the use of EBITDA as an accounting measure, particularly in relation to its potential shortcomings and the need for caution among analysts and investors alike. The discussion points to a critical perspective on the over-reliance on EBITDA as the sole metric for evaluating financial health, advocating for a more holistic approach that integrates multiple financial indicators for a comprehensive assessment of company performance.