Remember, comparing your business to another peer is most helpful when anlyzing like sized business within your industry!When comparing to same asset sized businesss, the overall efficiency of the business can be determined.
EBITDA can be used to analyze the profitability between companies and industries.Because it eliminates the effects of financing and accounting decision, EBITDA can provide a relatively good "apples-to-apples" comparison.
This earnings measure id of particular interest in cases where comapnies have large amount of fixed assets which are subject to heavy depreciation charges(Such as manufacturing comapnies)or in the case where a company has a large amount of acquired intangible assets on its books and is thus subject to large amortization charges (Such as a company that has purchased a brand or a company that has recently made a large acquisition).