EBITDA margin is EBITDA divided by revenue. It shows how much of each euro of sales is left as operating cash profit before interest, tax, depreciation and amortisation. A high figure points to pricing power or a lean cost base. It is useful for comparing companies with different debt levels and tax rates.
Last updated: October 2026.
Why investors use it
- It ignores financing. Two companies with the same business but different debt levels have the same EBITDA margin.
- It ignores accounting for depreciation. Useful for comparing capital-heavy and asset-light peers.
- It is stable. Margins move less than net income and are easy to track over years.
What is a good margin
It depends on the industry, so always compare with peers.
| Sector | Typical EBITDA margin |
|---|---|
| Software and data | 25% to 40% or more |
| Pharma and medical devices | 20% to 35% |
| Consumer brands and luxury | 15% to 30% |
| Industrials | 10% to 20% |
| Retail and distribution | 5% to 10% |
| Telecoms | 30% to 40% |
These are broad ranges, not rules.
The screen, step by step
- Select your exchanges.
- Set EBITDA Margin (%) to a minimum of 25. In the page address it is stored as a fraction, so 25% is
0.25. - Set a minimum market cap of 300 million euros.
- Add Debt to Equity below 1 to avoid margins that sit on a fragile balance sheet.
- Add a valuation filter such as EV/EBITDA below 12.