Calculation Disclaimers

Quantro's screener rules are deterministic and grounded in source data — every output carries provenance metadata. In a small number of cases the raw data does not contain a specific field and we use a disclosed approximation. The approximations are documented here in full so you can evaluate their impact on any screener result.

screen_low_ev_ebitdaAPPROXIMATION

EBITDA ≈ EBIT × 1.15

The EV/EBITDA screener uses EBITDA as the earnings denominator. FinEdge Pro (the primary fundamental data source for Quantro) reports operating profit but does not separately report Depreciation & Amortisation (D&A) as a standalone line item for all companies in its API response.

When EBITDA is available directly from the income statement, that value is used with no approximation.

When EBITDA is not available, Quantro computes:

EBITDA_approx = EBIT × 1.15

The 1.15× factor reflects typical D&A ratios for Indian listed companies: median D&A as a percentage of EBIT is approximately 13–17% across NSE manufacturing and services sectors (sourced from FinEdge annual filings, FY2022–FY2024). The factor is deliberately conservative — it slightly overstates EBITDA, which understates EV/EBITDA, which biases toward fewer results passing the screener. Errors of conservatism are safer for a value screener than errors of optimism.

Implications for screener output:

Asset-heavy businesses (steel, cement, power) carry high D&A. The 1.15× factor may understate their EBITDA, making their EV/EBITDA look higher (worse) than reality. Cross-check with reported EBITDA before acting on this screener for capital-intensive sectors.
Software and financial services businesses carry near-zero D&A. The 1.15× factor slightly overstates their EBITDA, but the distortion is small (<1× on EV/EBITDA at typical multiples).
The metric_values field in the API response indicates whether the EBITDA used was sourced directly or approximated (ebitda_source: "reported" vs "ebit_approx").