note that EBITDA isn't directly equivalent to cash flows, and can be wildly different depending on how creative the accounting is. EBIT/EBITDA can be useful is

note that EBITDA isn't directly equivalent to cash flows, and can be wildly different depending on how creative the accounting is. EBIT/EBITDA can be useful is some comparative valuation exercises as an idealized cash flow substitute (especially when comparing companies or time periods under differing tax regimes), but it's not actual cash in minus cash out, as the term "cash flow" implies.