Earnings Before Tax (EBT), also called Profit Before Tax (PBT), is the net income a company generates after accounting for all revenues, operating expenses, depreciation, amortisation, and interest costs — but before the income tax charge is applied. It represents the 'taxable income' of the business and is a measure of underlying profitability independent of a company's tax jurisdiction or structure.
EBT is widely used in private market financial analysis because it allows meaningful comparison of companies operating in different tax jurisdictions across Southeast Asia and Australia, where effective corporate tax rates vary significantly. A positive EBT confirms a company is operationally profitable; a negative EBT indicates a pre-tax loss, which may be acceptable for early-stage or high-growth companies reinvesting heavily in expansion.