Adjusted EBITDA stands for "earnings before interest, taxes, depreciation, and amortization" and is a financial metric that includes the removal of various one-time, irregular, and non-recurring items from EBITDA. The purpose of adjusting EBITDA is to get a normalized number that is not distorted by irregular gains, losses, or other items. Adjusted EBITDA is used to assess and compare related companies for valuation analysis and for other purposes. Adjusted EBITDA differs from the standard EBITDA measure in that a companys adjusted EBITDA is used to normalize its income and expenses since different companies may have several types of expense items that are unique to them. Adjusted EBITDA, as opposed to the non-adjusted version, will attempt to normalize income, standardize cash flows, and eliminate abnormalities or idiosyncrasies, which makes it easier to compare multiple business units or companies in a given industry. Adjusted EBITDA is most helpful when used in determining the value of a company for transactions such as mergers, acquisitions, or raising capital.