Why is EBITDA considered sus by many investors?

In fact, when I do my own budget, I mark the mortgage on my duplex as a monthly expense, as missing that payment is a big deal. However, according to EBITDA and other adjusted earnings metric, my mortgage "distorts the value" of my venture. Comprende?

Eh.. your mortgage payment (at least the capital part, not the interest part) is included in EBITDA, just not the (hypothetical) depreciation you make on your duplex.
As another person already clarified, EBITDA should be (and is) mainly used to get a better view on operational cash flow (excluding interest and taxes). Therefore, as with all (financial) metrics, looking at EBITDA in isolation is not smart.

/r/investing Thread Parent