{
  "id": 41872,
  "date": "2021-08-10T12:00:00",
  "date_gmt": "2021-08-10T16:00:00",
  "guid": { "rendered": "https:\/\/finance-able.com\/?p=41872" },
  "modified": "2025-12-21T16:52:58",
  "modified_gmt": "2025-12-21T21:52:58",
  "slug": "ltm-revenue",
  "status": "publish",
  "type": "post",
  "link": "https:\/\/finance-able.com\/ltm-revenue\/",
  "title": {
    "rendered": "LTM Revenue (and EBITDA) in 3 Steps \u2013 The Ultimate Guide"
  },
  "content": {
    "rendered": "\n<p style=\"font-size:18.5px\">Learn to calculate <strong>LTM Revenue<\/strong> and <strong>EBITDA<\/strong> (or <strong>TTM Revenue<\/strong> and <strong>TTM EBITDA<\/strong>) like a pro so you can use it on the job in <strong>Investment Banking<\/strong>, <strong>Private Equity<\/strong>, and <strong>Investment Management<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">In this article, you\u2019ll see:<\/p>\n\n\n\n<div class=\"wp-block-advgb-list\"><ul class=\"advgblist-7a32e15a-6158-46ff-b0b6-c5107d7ae1dd\">\n<li><strong>Why Finance professionals<\/strong> use <strong>LTM Revenue and EBITDA Calculations<\/strong>.<\/li>\n\n\n\n<li>The <strong>3-Step Process<\/strong> for <strong>calculating LTM Revenue<\/strong> and <strong>EBITDA<\/strong>.<\/li>\n\n\n\n<li>Examples of calculations for <strong>Uber<\/strong> (LTM Revenue) and <strong>Coinbase<\/strong> (LTM EBITDA).<\/li>\n\n\n\n<li><strong>On-the-job<\/strong> use cases for <strong>Investment Banking<\/strong> and <strong>Private Equity<\/strong> Professionals.<\/li>\n<\/ul><\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-tl-dr\" style=\"font-size:35px\"><strong>TL;DR<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Last Twelve Month<\/strong> (\u2018<strong>LTM<\/strong>\u2019) <strong>calculations<\/strong> help us see the <strong>most recent<\/strong> year of <strong>Financial performance<\/strong> and can be <strong>completed<\/strong> with a <strong>3-Step Process<\/strong> detailed below.<\/li>\n\n\n\n<li><strong>LTM Revenue<\/strong> and <strong>EBITDA<\/strong> are <strong>widely used<\/strong> across the <strong>Finance<\/strong> world.<\/li>\n\n\n\n<li><strong>LTM<\/strong> and <strong>Trailing Twelve Months<\/strong> (\u2018<strong>TTM<\/strong>\u2019) are <strong>interchangeable<\/strong> terms.<\/li>\n\n\n\n<li><strong>Last Twelve Months calculations<\/strong> are far more <strong>useful<\/strong> in <strong>helping us understand<\/strong> <strong>past<\/strong> performance, whereas <strong>Next Twelve Months<\/strong> (\u2018<strong>NTM<\/strong>\u2019) provides <strong>insight<\/strong> into <strong>future performance<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p class=\"yoast-reading-time__wrapper\"><span class=\"yoast-reading-time__icon\"><svg aria-hidden=\"true\" focusable=\"false\" data-icon=\"clock\" width=\"20\" height=\"20\" fill=\"none\" stroke=\"currentColor\" style=\"display:inline-block;vertical-align:-0.1em\" role=\"img\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" viewBox=\"0 0 24 24\"><path stroke-linecap=\"round\" stroke-linejoin=\"round\" stroke-width=\"2\" d=\"M12 8v4l3 3m6-3a9 9 0 11-18 0 9 9 0 0118 0z\"><\/path><\/svg><\/span><span class=\"yoast-reading-time__spacer\" style=\"display:inline-block;width:1em\"><\/span><span class=\"yoast-reading-time__descriptive-text\">Estimated reading time: <\/span><span class=\"yoast-reading-time__reading-time\">13<\/span><span class=\"yoast-reading-time__time-unit\"> minutes<\/span><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n\n\n<div style=\"height:100px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-does-ltm-mean\" style=\"font-size:35px\"><strong>What Does LTM Mean?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"405\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM.png\" alt=\"A stick figure confused about the meaning of the term LTM\" class=\"wp-image-41977\" style=\"width:720px;height:405px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-the-meaning-of-LTM-100x56.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">The term <strong>LTM<\/strong> stands for <strong>\u2018Last Twelve Months.\u2019<\/strong> <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Finance professionals<\/strong> use <strong>LTM Calculations<\/strong> to analyze the <strong>previous full year<\/strong> of <strong>performance<\/strong> for a <strong>Business<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Analysts create LTM<\/strong> calculations because the regularly <strong>reported Financial data<\/strong> <strong>only reflects<\/strong> the <strong>prior twelve months of data <\/strong>once per year (right <strong>after<\/strong> the <strong>Annual Report<\/strong>).<\/p>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>LTM calculation<\/strong> is <strong>distinct<\/strong> from the <strong>most recent full-year<\/strong> (<strong>\u2018Fiscal\u2019<\/strong> or <strong>\u2018Calendar\u2019<\/strong> Year) or <strong>prior three months<\/strong> (<strong>\u2018Quarterly\u2019<\/strong>) data.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Two of the <strong>most common<\/strong> <strong>LTM calculations<\/strong> are <strong>LTM Revenue<\/strong> and <strong>LTM EBITDA<\/strong>. We\u2019ll show <strong>examples<\/strong> of how to <strong>calculate both<\/strong> in this article.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Before<\/strong> we dive into <strong>why LTM usage<\/strong> is so widespread, let\u2019s quickly clarify <strong>LTM vs TTM<\/strong>.<\/p>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div class=\"wp-block-columns containerwidth is-layout-flex wp-container-core-columns-is-layout-9d6595d7 wp-block-columns-is-layout-flex\">\n<div class=\"wp-block-column is-layout-flow wp-block-column-is-layout-flow\" style=\"flex-basis:100%\"><div class=\"kb-row-layout-wrap kb-row-layout-id41872_44d2dc-99 alignnone wp-block-kadence-rowlayout\"><div class=\"kt-row-column-wrap kt-has-1-columns kt-row-layout-equal kt-tab-layout-inherit kt-mobile-layout-row kt-row-valign-top\">\n\n<div class=\"wp-block-kadence-column kadence-column41872_a9b421-b9\"><div class=\"kt-inside-inner-col\">\n<h2 class=\"wp-block-heading\" id=\"h-want-to-learn-more-about-finance\" style=\"font-size:35px\"><strong>Want To Learn More About Finance?<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18px\"><strong>Check out all of our (free) deep-dive articles in our<\/strong> <a href=\"https:\/\/finance-able.com\/analyst-starter-kit\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Analyst Starter Kit<\/span><\/strong><\/a>:<\/p>\n\n\n<div class=\" wp-block-kadence-portfoliogrid kb-blocks-portfolio-loop-block alignnone kb-portfolio-loop41872_c9b5d7-7f kb-portfolio-grid-layout-carousel kt-blocks-carousel \"><div class=\" kb-portfolio-grid-layout-carousel-wrap kt-post-grid-layout-carousel-wrap kt-carousel-arrowstyle-whiteondark kt-carousel-dotstyle-dark splide kb-blocks-portfolio-img-hover-zoomout kb-blocks-portfolio-content-hover-zoomin\" data-columns-xxl=\"3\" data-columns-xl=\"3\" data-columns-md=\"3\" data-columns-sm=\"2\" data-columns-xs=\"1\" data-columns-ss=\"1\" data-slider-center-mode=\"false\" data-slider-type=\"carousel\" data-slider-anim-speed=\"400\" data-slider-scroll=\"1\" data-slider-dots=\"true\" data-slider-arrows=\"true\" data-slider-hover-pause=\"false\" data-slider-auto=\"true\" data-slider-center-mode=\"false\" data-slider-speed=\"7000\" data-show-pause-button=\"false\" data-slider-gap=\"30\" data-slider-gap-tablet=\"30\" data-slider-gap-mobile=\"30\" data-slider-gap-unit=\"px\" data-item-selector=\".kb-portfolio-masonry-item\"><div class=\"kadence-splide-slider-init splide__track\"><ul><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"An image of a lightbulb with the text Unlevered Beta Formula\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/03\/unlevered-beta-formula-lightbulb.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/unlevered-beta-formula\/\" aria-label=\"Unlevered Beta Formula &#8211; Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Unlevered Beta Formula &#8211; Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:56.25%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png\" class=\"attachment-large size-large wp-post-image\" alt=\"A lightbulb and the words Purchase Price Allocation\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2023\/01\/lightbulb-purchase-price-allocation.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/purchase-price-allocation\/\" aria-label=\"Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Purchase Price Allocation in 4 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><li class=\"kb-portfolio-slider-item kb-slide-item\"><div class=\"kb-blocks-portfolio-grid-item\"><div class=\"kb-blocks-portfolio-grid-item-inner-wrap kb-feat-image-align-none\"><div class=\"kadence-portfolio-image\"><div class=\"kadence-portfolio-image-intrisic kt-image-ratio-nocrop\" style=\"padding-bottom:45.138888888889%\"><div class=\"kadence-portfolio-image-inner-intrisic\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"325\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png\" class=\"attachment-large size-large wp-post-image\" alt=\": A stick figure answering an interview question with the title text &#039;Walk Me Through an LBO&#039; below\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-300x135.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-400x181.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-624x282.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-50x23.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/06\/0-Walk-Me-Through-a-DCF-Definitive-Guide-Cover-1-100x45.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/div><\/div><\/div><div class=\"kb-portfolio-grid-item-inner\"><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\" aria-label=\"Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide\" class=\"portfolio-hover-item-link\"><\/a><div class=\"kb-portfolio-overlay-color\"><\/div><div class=\"kb-portfolio-overlay-border\"><\/div><div class=\"kb-portfolio-content-item-inner\"><h3 class=\"entry-title kb-portfolio-loop-title\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide<\/h3><\/div><\/div><\/div><\/div><\/li><\/ul><\/div><div class=\"clearfix\" style=\"clear:both\"><\/div><\/div><\/div><\/div><\/div>\n\n<\/div><\/div>\n\n\n<p><\/p>\n<\/div>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-what-does-ttm-mean-is-it-the-same-as-ltm\" style=\"font-size:35px\"><strong>What does TTM Mean? Is it the same as LTM?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"405\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2.png\" alt=\"An image showing Last Twelve Months (LTM) vs Trailing Twelve Months (TTM)\" class=\"wp-image-42050\" style=\"width:720px;height:405px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-TTM_v2-100x56.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">Frustratingly, <strong>in the Finance world<\/strong>, we <strong>seem to<\/strong> <strong>need multiple terms<\/strong> for everything.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>numerous interchangeable terms<\/strong> often <strong>cause massive confusion<\/strong> for <strong>newcomers<\/strong>. <strong>LTM calculations <\/strong>are <strong>no exception<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">As we mentioned before, <strong>LTM stands<\/strong> for <strong>\u2018Last Twelve Months<\/strong>.\u2019<\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, there\u2019s another term for this same concept which is <strong>TTM<\/strong> or <strong>\u2018Trailing Twelve Months.\u2019<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">While <strong>LTM<\/strong> is <strong>more common<\/strong> in our experience, <strong>TTM<\/strong> is <strong>pretty widespread<\/strong> and <strong>means<\/strong> the <strong>exact same thing as LTM<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\">So, <strong>if someone asks you to calculate TTM Revenue<\/strong>, it&#8217;s the <strong>same calculation <\/strong>as <strong>LTM Revenue<\/strong>. <\/p>\n\n\n\n<p><\/p>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-use-ltm-revenue-and-ebitda\" style=\"font-size:35px\"><strong>Why Use LTM Revenue and EBITDA?<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"405\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA.png\" alt=\"A stick figure wondering why LTM Revenue and LTM EBITDA  calculations are used\" class=\"wp-image-41983\" style=\"width:720px;height:405px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Stick-figure-confused-about-how-to-calculate-LTM-revenue-and-LTM-EBITDA-100x56.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">When analyzing a company, <strong>you\u2019ll want<\/strong> to see the Company\u2019s <strong>most up-to-date performance<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">While <strong>Quarterly data<\/strong> can be <strong>helpful<\/strong>, <strong>some companies<\/strong> have <strong>significant fluctuations<\/strong> in their <strong>Business<\/strong> <strong>in particular quarters <\/strong>within each year.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">As an <strong>example<\/strong>, <strong>let\u2019s look at <\/strong>a <strong>Retail Business<\/strong> like <a href=\"http:\/\/www.bestbuy.com\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Best Buy<\/span><\/strong><\/a><strong>.<\/strong><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"405\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue.png\" alt=\"An Image showing quarterly Revenue for Best Buy over the previous three years \" class=\"wp-image-41986\" style=\"width:720px;height:405px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Best-Buy-Quarterly-Revenue-100x56.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">As you can see above, <strong>the fourth quarter<\/strong> (i.e. the Christmas Holidays) <strong>generates<\/strong> a <strong>significant portion<\/strong> of annual <strong>Revenue<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If <\/strong>we <strong>only looked<\/strong> at the <strong>fourth quarter<\/strong> for <strong>Best Buy,<\/strong> we\u2019d see a <strong>VERY distorted picture<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Because<\/strong> of <strong>fluctuations<\/strong> like this within <strong>each year<\/strong>, we typically <strong>want<\/strong> to see a <strong><u>full year<\/u><\/strong> of <strong>Financial data<\/strong>. This is where <strong>LTM Revenue <\/strong>would be very helpful. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If Companies reported<\/strong> a <strong>full year<\/strong> of <strong>Financial data<\/strong> with each<strong> Quarterly Report<\/strong>, the concept of <strong>LTM<\/strong> <strong>would not exist<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">However, <strong>most companies<\/strong> <strong>report 12 months<\/strong> of data <strong>once per Year<\/strong> and <strong>Quarterly data<\/strong> <strong>three times<\/strong> per year.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">As a result, <strong>we<\/strong> can <strong>only see<\/strong> the <strong>prior twelve months<\/strong> of performance <strong>for the 3 months after<\/strong> the <strong>Annual Report<\/strong> (or <strong><a href=\"https:\/\/www.thebalance.com\/what-is-a-10-k-and-why-should-an-investor-read-it-357303\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">10K Filing<\/span><\/a> <\/strong>in the US).<\/p>\n\n\n\n<p style=\"font-size:18.5px\">As we\u2019ll see in the <strong>next section<\/strong>, an <strong>LTM calculation<\/strong> <strong>allows<\/strong> us to <strong>see the previous 12 months<\/strong> of performance <strong>at any point<\/strong> <strong>in the year<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-annual-and-quarterly-numbers-on-a-timeline.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ltm-revenue-and-ebitda-calculations-in-3-steps\" style=\"font-size:35px\"><strong>LTM Revenue and EBITDA Calculations in 3 Steps<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">To <strong>calculate<\/strong> any <strong>LTM metric<\/strong>, we follow the <strong>simple, 3-Step Process<\/strong> below:<\/p>\n\n\n<!-- This site is converting visitors into subscribers and customers with OptinMonster - https:\/\/optinmonster.com :: Campaign Title: LTM Revenue - Obfuscation -->\n<div id=\"om-u77ag7t6otvium1vr035-holder\"><\/div>\n<script>(function(d,u,ac){var s=d.createElement('script');s.type='text\/javascript';s.src='https:\/\/a.omappapi.com\/app\/js\/api.min.js';s.async=true;s.dataset.user=u;s.dataset.campaign=ac;d.getElementsByTagName('head')[0].appendChild(s);})(document,130718,'u77ag7t6otvium1vr035');<\/script>\n<!-- \/ OptinMonster -->\n\n\n\n<div class=\"schema-how-to wp-block-yoast-how-to-block\"><p class=\"schema-how-to-description\"><strong>How to Calculate LTM Revenue (or LTM EBITDA) in 3 Steps<\/strong><\/p> <ol class=\"schema-how-to-steps\"><li class=\"schema-how-to-step\" id=\"how-to-step-1626201081064\"><strong class=\"schema-how-to-step-name\">Find the <strong>Latest Annual Financial data<\/strong>.<\/strong> <p class=\"schema-how-to-step-text\">Pull the most recent Annual data from the <strong><em>latest<\/em><\/strong> Annual Filing (typically the 10-K Filing in the US).<\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1626201104068\"><strong class=\"schema-how-to-step-name\"><strong><u>Add<\/u><\/strong> the <strong>latest Year-To-Date<\/strong> <strong>Financial data<\/strong>.<\/strong> <p class=\"schema-how-to-step-text\">Pull the most recent YTD data from the <strong><em>latest<\/em><\/strong> Quarterly Filing (typically the 10-Q Filing in the US).<\/p> <\/li><li class=\"schema-how-to-step\" id=\"how-to-step-1626201118780\"><strong class=\"schema-how-to-step-name\"><strong><u>Subtract<\/u><\/strong> the <strong>Year-To-Date<\/strong> <strong>Financial data<\/strong> for the <strong>same period<\/strong> in the <strong>prior year<\/strong>.<\/strong> <p class=\"schema-how-to-step-text\">Pull the prior year YTD data from the <strong><em>latest<\/em><\/strong> Quarterly Filing (typically the 10-Q Filing in the US).<\/p> <\/li><\/ol><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/three-steps-to-calculate-LTM-revenue-or-LTM-EBITDA-1.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\"><strong>With this calculation, we can quickly compute the latest Twelve Months of data at any point in the year.<\/strong> <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Below <\/strong>we&#8217;ve included a <strong>simple, visual example <\/strong>of an <strong>LTM calculation on a timeline <\/strong>so you can <strong>more easily see <\/strong>how <strong>each <\/strong>of the <strong>pieces <\/strong>from the steps above come together.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/a-simple-LTM-calculation-on-timeline-with-numbers.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">Now <strong>let\u2019s look<\/strong> at a few <strong>real-life LTM calculations<\/strong>!<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ltm-revenue-and-ebitda-examples-uber-and-coinbase\" style=\"font-size:35px\"><strong>LTM Revenue and EBITDA Examples: Uber and Coinbase<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">We\u2019ve explained LTM at a high level. Now, let\u2019s walk through a couple of <strong>LTM calculations<\/strong> in action for <strong>Uber<\/strong> and <strong>Coinbase<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">These <strong>examples<\/strong> will <strong>help you understand<\/strong> how to <strong>source the data<\/strong> needed to <strong>calculate LTM Revenue<\/strong> and <strong>LTM EBITDA<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-how-to-calculate-ltm-revenue-for-uber\" style=\"font-size:26px\"><strong>Example: How To Calculate LTM Revenue for Uber<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">Let\u2019s <strong>imagine that we want<\/strong> to <strong>calculate<\/strong> the <strong>LTM Revenue<\/strong> for the ridesharing business <strong>Uber<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>To calculate LTM Revenue<\/strong>, we\u2019d <strong>begin<\/strong> by finding the Company\u2019s <strong>latest Annual Revenue<\/strong> in <strong>Uber\u2019s<\/strong> <strong>most recent 10-K filing<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-1024x576.png\" alt=\"Uber\u2019s 10K filing with Annual Revenue highlighted\" class=\"wp-image-42194\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10K-filing-with-Annual-Revenue-Highlighted-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Source: <a href=\"http:\/\/sec.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>SEC Filings<\/strong><\/a><\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">We\u2019d <strong>then look<\/strong> for the <strong>latest Year-To-Date Revenue data<\/strong> in <strong>Uber\u2019s<\/strong> <strong>most recent 10-Q filing<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-1024x576.png\" alt=\"Uber\u2019s 10Q filing with Year to Date Revenue highlighted\" class=\"wp-image-42195\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Uber-10Q-filing-with-YTD-Revenue-Highlighted-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Source: <a href=\"http:\/\/sec.gov\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>SEC Filings<\/strong><\/a><\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\"><strong>Now<\/strong> that we\u2019ve found both of these items, we can complete the <strong>LTM Revenue Calculation<\/strong> for <strong>Uber<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/a-sample-LTM-revenue-calculation-for-Uber-Technologies.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">In this example, <strong>Uber\u2019s LTM Revenue<\/strong> <strong>declined slightly<\/strong> to <strong>3% below <\/strong>the <strong>latest Annual Revenue<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-example-how-to-calculate-ltm-ebitda-for-coinbase\" style=\"font-size:26px\"><strong>Example: How To Calculate LTM EBITDA for Coinbase<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\">Let\u2019s now <strong>imagine that we want<\/strong> to <strong>calculate<\/strong> the <strong>LTM <\/strong><a href=\"https:\/\/www.fool.com\/investing\/how-to-invest\/stocks\/ebitda\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">EBITDA<\/span><\/strong><\/a><strong> for<\/strong> the Cryptocurrency Exchange Platform <strong>Coinbase<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">We\u2019d <strong>begin<\/strong> by finding the Company\u2019s <strong>latest Annual EBITDA <\/strong>in <strong>Coinbase\u2019s S-1 Filing<\/strong>. <\/p>\n\n\n\n<p style=\"font-size:18.5px\"><em>Note: We are only pulling from the S-1 filing in this case because Coinbase just went public in April 2021. As a result, the company hasn&#8217;t yet published a 10K filing.<\/em><\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-1024x576.png\" alt=\"Coinbase S-1 filing with Annual Revenue highlighted\" class=\"wp-image-42197\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-S1-filing-with-Annual-EBITDA-Highlighted-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><figcaption class=\"wp-element-caption\"><em>Source: <a href=\"http:\/\/sec.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>SEC Filings<\/strong><\/a><\/em><\/figcaption><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">We\u2019d <strong>then look<\/strong> for the <strong>latest Year-To-Date Financial data<\/strong> in <strong>Coinbase\u2019s most recent 10Q filing<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-1024x576.png\" alt=\"Coinbase 10Q filing with Year to Date EBITDA highlighted\" class=\"wp-image-42207\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Coinbase-10Q-filing-with-YTD-EBITDA-Highlighted.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\"><strong>Now<\/strong> that we\u2019ve found both of these items, we can <strong>complete the LTM EBITDA Calculation <\/strong>for <strong>Coinbase<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/a-sample-LTM-EBITDA-revenue-calculation-for-Coinbase-1.mp4\" playsinline><\/video><figcaption class=\"wp-element-caption\"><em>Source: <a href=\"http:\/\/sec.gov\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong>SEC Filings<\/strong><\/a><\/em><\/figcaption><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">In this example, <strong>Coinbase\u2019s LTM EBITDA increased significantly<\/strong> to <strong>202% higher <\/strong>than the <strong>latest Annual EBITDA<\/strong>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-examples-of-ltm-calculations-in-real-life\" style=\"font-size:35px\"><strong>Examples of LTM Calculations in Real Life<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Finance Professionals<\/strong> across <strong>Investment Banking<\/strong>, <strong>Private Equity<\/strong>, and <strong>Lending (<\/strong>or \u2019<strong>Credit<\/strong>\u2019<strong>) <\/strong>use <strong>LTM Revenue<\/strong> and <strong>LTM EBITDA<\/strong> metrics every day.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"576\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-1024x576.png\" alt=\"An image showing that Investment Banking, Private Equity and Credit professionals regularly use LTM Revenue\" class=\"wp-image-42199\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-1024x576.png 1024w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-768x432.png 768w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1-100x56.png 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/investment-banking-private-equity-and-lender-professionals-use-LTM-metrics-1.png 1280w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\n<\/div>\n\n\n<p style=\"font-size:18.5px\">In the <strong>sections below<\/strong>, we will <strong>cover<\/strong> a few <strong>real-life use cases<\/strong> for <strong>LTM Revenue<\/strong> and <strong>LTM EBITDA<\/strong>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-investment-banking-use-case-ev-ltm-ebitda\" style=\"font-size:35px\"><strong>Investment Banking Use Case: EV \/ LTM EBITDA<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">Nearly every <a href=\"https:\/\/finance-able.com\/world-of-finance-4-how-do-investment-banks-operate\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Investment Bank<\/span><\/strong><\/a> has a <strong>Mergers and Acquisitions<\/strong> (or \u2018<strong>M&amp;A<\/strong>\u2019) advisory offering. In M&amp;A, Bankers <strong>advise<\/strong> their <strong>Clients<\/strong> on the <a href=\"https:\/\/finance-able.com\/how-to-value-a-business-made-simple\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Valuation<\/span><\/strong><\/a> of their <strong>Clients\u2019 Businesses<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>One of <\/strong>the <strong>most commonly used metrics<\/strong> for <strong>Valuation<\/strong> in <strong>Investment Banking<\/strong> is the <a href=\"https:\/\/finance-able.com\/enterprise-value-vs-equity-value-in-plain-english\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Enterprise Value<\/span><\/strong><\/a> \/ LTM EBITDA (or <strong>EV \/ LTM EBITDA<\/strong>) <strong>Multiple<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">This <strong>particular <\/strong>multiple is <strong>one of<\/strong> the most <strong>typical multiples<\/strong> for <strong>Acquisition Analysis<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">By looking at the <strong>Last Twelve Months<\/strong> <strong>of EBITDA<\/strong>, the <strong>Bankers<\/strong> can <strong>create<\/strong> a <strong>Valuation Multiple<\/strong> that incorporates the <strong>Company\u2019s<\/strong> <strong>latest <\/strong>Financial <strong>performance<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-what-is-enterprise-value\" style=\"font-size:22px\"><strong>What is Enterprise Value?<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">Very briefly, <strong>Enterprise Value<\/strong> represents the <strong>Purchase Price<\/strong> of the <em>entire<\/em> <strong>Business<\/strong>. And it\u2019s common to look at <strong>Enterprise Value<\/strong> relative to the <strong>Last Twelve Months<\/strong> of <strong>EBITDA<\/strong>.<\/p>\n\n\n\n<div style=\"height:40px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p><\/p>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-how-an-investment-banker-would-use-ev-ltm-ebitda\" style=\"font-size:22px\"><strong>How an Investment Banker would use EV \/ LTM EBITDA<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\">An <strong>Investment Banker<\/strong> would typically <strong>calculate<\/strong> the <strong>EV \/ LTM EBITDA<\/strong> <strong>Multiple<\/strong> for <strong>several peer companies.<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>The banker <\/strong>would then<strong> apply<\/strong> the <strong>Peer EV \/ LTM EBITDA Multiple<\/strong> to the <strong>Client company\u2019s EBITDA<\/strong> to <strong>determine<\/strong> the <strong>appropriate sale Valuation<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/a-banker-valuing-a-business-for-a-client-based-on-ltm-EBITDA-1.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-private-equity-use-case-debt-ltm-ebitda\" style=\"font-size:35px\"><strong>Private Equity Use Case: Debt \/ LTM EBITDA<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">Traditional <a href=\"https:\/\/finance-able.com\/venture-capital-vs-growth-equity-private-equity\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Private Equity<\/span><\/strong><\/a> (i.e. <strong>\u2018Leveraged Buyout\u2019 or <\/strong>\u2018<a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">LBO<\/span><\/strong><\/a>\u2019) firms make acquisitions using <a href=\"https:\/\/finance-able.com\/stocks-and-bonds\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Debt<\/span><\/strong><\/a>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">The <strong>level of Debt<\/strong> that they can raise is <strong>typically expressed<\/strong> as a <strong>multiple<\/strong> of <strong>Debt<\/strong> to <strong>LTM EBITDA<\/strong> (or <strong>Debt \/ LTM EBITDA)<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Let\u2019s say <strong>Lenders<\/strong> are willing to <strong>offer<\/strong> <strong>5 Times<\/strong> (or <strong>\u20185x\u2019<\/strong>) <strong>Debt \/ LTM EBITDA<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>We could<\/strong> then <strong>calculate LTM EBITDA<\/strong> to <strong>determine<\/strong> the <strong>level of<\/strong> <strong>Debt<\/strong> that could be <strong>raised to fund<\/strong> the <strong>LBO transaction<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">Let\u2019s say our <strong>Acquisition Target<\/strong> generates <strong>$100 million<\/strong> of <strong>LTM EBITDA. <\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\">In that case, the <strong>Private Equity<\/strong> firm could <strong>raise $500 million<\/strong> ($100 million LTM EBITDA * 5x Debt \/ EBITDA) of <strong>Total Debt <\/strong>to <strong>fund<\/strong> the <strong>Acquisition<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Lender-offering-debt-based-on-LTM-EBITDA-1.mp4\" playsinline><\/video><\/figure>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h4 class=\"wp-block-heading\" id=\"h-why-do-lenders-use-debt-ltm-ebitda\" style=\"font-size:22px\"><strong>Why do Lenders use Debt \/ LTM EBITDA?<\/strong><\/h4>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Debt \/ LTM EBITDA<\/strong> is the <strong>go-to metric<\/strong> for <strong>Lenders<\/strong> in <strong>Private Equity <\/strong>transactions<strong>.<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>LTM <\/strong>data<strong> helps them see<\/strong> the <strong>latest Year of EBITDA performance <\/strong>for the <strong>Company<\/strong> <strong>to lend their money<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Lenders<\/strong> can <strong>weigh<\/strong> the <strong>latest year of EBITDA<\/strong> against <strong>the Debt (i.e. Interest)<\/strong> <strong>burden <\/strong>the <strong>Company will bear <\/strong>after money is lent.<\/p>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ltm-reflects-the-past-and-ntm-reflects-the-future\" style=\"font-size:35px\"><strong>LTM Reflects the Past and NTM Reflects The Future<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>LTM Revenue<\/strong> and <strong>EBITDA<\/strong> <strong>tell us<\/strong> what happened <strong>in the past.<\/strong><\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Lenders<\/strong> to <strong>Private Equity<\/strong> deals <strong>focus<\/strong> <strong>primarily <\/strong>on <strong>past performance<\/strong> (or <strong>\u2018Creditworthiness\u2019<\/strong>) to <strong>ensure<\/strong> they will be <strong>repaid.<\/strong> As a result, <strong>LTM metrics<\/strong> <strong>dominate<\/strong> the <strong>Debt world<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">On the other hand, <strong>LTM<\/strong> metrics <strong>do not offer<\/strong> <strong>insight<\/strong> <strong>into <\/strong>what will happen in the <strong>future<\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<figure class=\"wp-block-video aligncenter\"><video height=\"1080\" style=\"aspect-ratio: 1920 \/ 1080;\" width=\"1920\" autoplay loop muted src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/LTM-vs-NTM-Metrics-Past-vs-Future-Performance-1.mp4\" playsinline><\/video><\/figure>\n\n\n\n<p style=\"font-size:18.5px\">As a result, <strong>LTM Revenue<\/strong> and <strong>LTM EBITDA<\/strong> are <strong>not nearly<\/strong> <strong>as commonly used<\/strong> in <strong>Investment Management<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">To be specific, <strong>we are referring here<\/strong> to <strong>Equity-focused Investment Managers<\/strong> like <a href=\"https:\/\/finance-able.com\/hedge-fund-vs-mutual-fund\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Hedge Funds and Mutual Funds<\/span><\/strong><\/a>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Equity funds<\/strong> are looking to <strong>generate returns based<\/strong> on <strong>future results<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">As a result, they <strong>tend to focus<\/strong> on the <strong>future performance,<\/strong> which is <strong>captured by<\/strong> <strong>Next Twelve Months<\/strong> (or <strong>\u2018NTM\u2019<\/strong>) <strong>Revenue<\/strong> and <strong>EBITDA<\/strong>.<\/p>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 class=\"wp-block-heading\" id=\"h-where-can-i-find-ntm-financial-data\" style=\"font-size:26px\"><strong>Where Can I Find NTM Financial Data?<\/strong><\/h3>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Equity Research analysts<\/strong> create <strong>estimated<\/strong> <strong>NTM financials<\/strong> for the <strong>Companies<\/strong> they cover. The Analysts then submit their estimates <strong>to aggregators<\/strong> like <a href=\"https:\/\/www.factset.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">FactSet<\/span><\/strong><\/a> and <a href=\"https:\/\/www.bloomberg.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Bloomberg<\/span><\/strong><\/a>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Individual Investors<\/strong> <strong>can find<\/strong> these <strong>metrics<\/strong> on <strong><a href=\"https:\/\/www.koyfin.com\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Koyfin<\/span><\/a><\/strong>, an aggregator that offers the <strong>same information<\/strong> but <strong>for free<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\">These <strong>aggregators<\/strong> then <strong>publish<\/strong> the <strong>average<\/strong> (or \u2018<strong>Consensus<\/strong>\u2019) of all the <strong>estimates<\/strong> submitted, which are used to create <strong>EV \/ NTM Revenue<\/strong> and <strong>EV \/ NTM EBITDA<\/strong> multiples.<\/p>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-wrap-up-ltm-revenue-and-ebitda\" style=\"font-size:35px\"><strong>Wrap-Up: LTM Revenue (and EBITDA) <\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\">Hopefully, you have a <strong>much better understanding<\/strong> of both the <strong>LTM Calculation Process<\/strong> and the <strong>underlying idea behind LTM Calculations<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>LTM<\/strong> <strong>metrics <\/strong>are <strong>widely used <\/strong>throughout the <strong>Finance world<\/strong>, and you can <strong>follow<\/strong> our <strong>3-Step<\/strong> <strong>Process <\/strong>to calculate <strong>LTM Revenue<\/strong>, <strong>LTM EBITDA<\/strong>, or any <strong>LTM metric<\/strong>.<\/p>\n\n\n\n<p style=\"font-size:18.5px\"><strong>Let us know if you have any questions in the comments below. We\u2019d love to hear from you!<\/strong><\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-ltm-revenue-and-ebitda-deep-dive-video\" style=\"font-size:35px\"><strong>LTM Revenue (and EBITDA) &#8211; Deep Dive Video<\/strong><\/h2>\n\n\n\n<p style=\"font-size:18.5px\"><strong>If you enjoyed this article<\/strong>, definitely <strong>check out<\/strong> our video on <strong><a href=\"https:\/\/youtu.be\/J4jkaFHAmVk\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">LTM Revenue and EBITDA<\/span><\/a><\/strong>.<\/p>\n\n\n\n<div style=\"height:25px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center\" style=\"font-size:25px\">Find more videos just like this on our <strong><a href=\"https:\/\/www.youtube.com\/c\/FinanceableTraining\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">YouTube Channel<\/span><\/a><\/strong>.<\/p>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-related-links\" style=\"font-size:35px\"><strong>Related Links<\/strong><\/h2>\n\n\n\n<ul class=\"wp-block-yoast-seo-related-links yoast-seo-related-links\">\n<li><strong><a href=\"https:\/\/finance-able.com\/walk-me-through-a-dcf\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Walk Me Through a DCF in 5 Steps &#8211; The Ultimate Guide (2021)<\/span><\/a><\/strong><\/li>\n\n\n\n<li><a href=\"https:\/\/finance-able.com\/walk-me-through-an-lbo\/\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Walk Me Through an LBO in 6 Steps \u2013 The Ultimate Guide (2021)<\/span><\/strong><\/a><\/li>\n\n\n\n<li><strong><a href=\"https:\/\/finance-able.com\/learn-finance-foundational-framework\/\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Learn Finance ASAP #1 \u2013 The Foundational Framework<\/span><\/a><\/strong><\/li>\n<\/ul>\n\n\n\n<div style=\"height:50px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-about-the-author\" style=\"font-size:35px\"><strong>About the Author<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"alignleft size-large is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"500\" height=\"500\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg\" alt=\"Picture of Mike Kimpel, Founder of Finance|able\" class=\"wp-image-26350\" style=\"width:266px;height:266px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo.jpg 500w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-300x300.jpg 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-100x100.jpg 100w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-150x150.jpg 150w, https:\/\/finance-able.com\/wp-content\/uploads\/2020\/12\/MK-Photo-50x50.jpg 50w\" sizes=\"auto, (max-width: 500px) 100vw, 500px\" \/><\/figure>\n<\/div>\n\n\n<p class=\"has-normal-font-size\"><a href=\"https:\/\/finance-able.com\/about\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Mike Kimpel<\/span><\/strong><\/a> is the <strong>Founder and CEO<\/strong> of <strong>Finance|able<\/strong>, a next-generation Finance Career Training platform. Mike has worked in Investment Banking, Private Equity, Hedge Fund, and Mutual Fund roles during his career.<\/p>\n\n\n\n<p class=\"has-normal-font-size\">He is an <strong>Adjunct Professor<\/strong> in <strong>Columbia Business School&#8217;s <a href=\"https:\/\/www8.gsb.columbia.edu\/valueinvesting\/coursesfaculty\/valueinvestingprogram\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\">Value Investing Program<\/span><\/a><\/strong> and leads the Finance track at <a href=\"https:\/\/www.accessdistributed.org\/\" target=\"_blank\" rel=\"noreferrer noopener\"><span class=\"has-inline-color has-vivid-cyan-blue-color\"><strong>Access Distributed<\/strong><\/span><\/a>, a non-profit that creates access to top-tier Finance jobs for students at non-target schools from underrepresented backgrounds.<\/p>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-frequently-asked-questions\" style=\"font-size:35px\"><strong>Frequently Asked Questions <\/strong><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1626196571619\"><strong class=\"schema-faq-question\"><em>How do you Calculate LTM Revenue?<\/em><\/strong> <p class=\"schema-faq-answer\">To <strong>calculate LTM Revenue<\/strong>, we: <br\/>1) <strong>find<\/strong> the <strong>Latest Annual Financial data<\/strong><br\/>2) then <strong><span style=\"text-decoration: underline;\">add<\/span><\/strong> the <strong>latest Year-To-Date<\/strong> Financial data, and <br\/>3) <strong><span style=\"text-decoration: underline;\">Subtract<\/span><\/strong> the <strong>Year-To-Date <\/strong>Financial data for the <strong>same period<\/strong> in the <strong>prior year<\/strong>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626196769731\"><strong class=\"schema-faq-question\"><em>What is LTM in Finance?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>LTM<\/strong> (or \u2018<strong>Last Twelve Months<\/strong>\u2019) calculations <strong>reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of <strong>Financial performance <\/strong>and have various applications in the Finance world across Investment Banking, Private Equity, and Investment Management.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626196817258\"><strong class=\"schema-faq-question\"><em>What does LTM stand for?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>LTM<\/strong> stands for \u2018<strong>Last Twelve Months<\/strong>,\u2019 and it <strong>refers to calculations<\/strong> that <strong>show<\/strong> the <strong>most recent Twelve Months<\/strong> of Financial <strong>performance<\/strong> (e.g. LTM Revenue and LTM EBITDA).<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626196850299\"><strong class=\"schema-faq-question\"><em>What is TTM?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>TTM<\/strong> stands for \u2018<strong>Trailing Twelve Months<\/strong>\u2019 and it <strong>refers to calculations<\/strong> that <strong>show<\/strong> the <strong>most recent twelve months<\/strong> of Financial <strong>performance<\/strong> (e.g. LTM Revenue and LTM EBITDA). The term is <strong>interchangeable<\/strong> with <strong>LTM<\/strong> or \u2018<strong>Last Twelve Months<\/strong>\u2019.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197074031\"><strong class=\"schema-faq-question\"><em>What does TTM mean? or What\u2019s TTM mean?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>TTM<\/strong> stands for \u2018<strong>Trailing Twelve Months<\/strong>\u2019 and it <strong>refers<\/strong> to <strong>calculations<\/strong> that <strong>show the most recent Twelve Months<\/strong> of Financial Performance (e.g. TTM Revenue and TTM EBITDA).<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197101486\"><strong class=\"schema-faq-question\"><em>What is LTM and NTM?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>LTM<\/strong> stands for \u2018<strong>Last Twelve Months<\/strong>\u2019 and <strong>reflects<\/strong> the <strong>most recent Twelve Months<\/strong> of Financial <strong>performance<\/strong>. <strong>NTM<\/strong> stands for \u2018<strong>Next Twelve Months<\/strong>\u2019 and <strong>reflects<\/strong> a Business&#8217;s <strong>estimated Financial performance<\/strong> for the <strong>upcoming Twelve Months<\/strong>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197127665\"><strong class=\"schema-faq-question\"><em>Is LTM and TTM the same?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>LTM<\/strong> (or \u2018<strong>Last Twelve Months<\/strong>\u2019) and <strong>TTM<\/strong> (\u2018<strong>Trailing Twelve Months<\/strong>\u2019) are <strong>interchangeable<\/strong>. <strong>Both<\/strong> <strong>reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of Financial performance for a <strong>Business<\/strong>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197158340\"><strong class=\"schema-faq-question\"><em>What is LTM Revenue? What is TTM Revenue?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>LTM Revenue<\/strong> and <strong>TTM Revenue <\/strong>are <strong>interchangeable<\/strong> terms. <strong>Both reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of <strong>Revenue<\/strong> generated by a <strong>Business<\/strong>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197179192\"><strong class=\"schema-faq-question\"><em>What is LTM EBITDA? What is TTM EBITDA?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>LTM Revenue <\/strong>and <strong>TTM EBITDA<\/strong> are <strong>interchangeable<\/strong> terms. <strong>Both reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of <strong>EBITDA<\/strong> generated by a <strong>Business<\/strong>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197209080\"><strong class=\"schema-faq-question\"><em>What is EV \/ LTM Revenue?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>EV\/LTM Revenue<\/strong> is a <strong>commonly used Valuation Multiple<\/strong> that looks at the <strong>Purchase Price<\/strong> (\u2018Enterprise Value\u2019 or \u2018EV\u2019) of the <strong>entire Business relative to<\/strong> the last twelve months (\u2018LTM\u2019) of <strong>Revenue<\/strong> generated by the <strong>Business<\/strong>.<br\/><\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1626197233235\"><strong class=\"schema-faq-question\"><em>How to calculate LTM EV \/ EBITDA?<\/em><\/strong> <p class=\"schema-faq-answer\"><strong>EV\/LTM EBITDA<\/strong> is a <strong>commonly used Valuation Multiple <\/strong>that looks at the <strong>Purchase Price <\/strong>(\u2018Enterprise Value\u2019 or \u2018EV\u2019) of the <strong>entire Business relative<\/strong> to the last twelve months (\u2018LTM\u2019) of <strong>EBITDA<\/strong> generated by the <strong>Business<\/strong>.<br\/><\/p> <\/div> <\/div>\n\n\n\n<div style=\"height:65px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-aiming-for-investment-banking-private-equity-or-investment-management-check-this-out\" style=\"font-size:35px\"><strong>Aiming for Investment Banking, Private Equity, or Investment Management? Check This Out!<\/strong><\/h2>\n\n\n<div class=\"wp-block-image\">\n<figure class=\"aligncenter size-full is-resized\"><img loading=\"lazy\" decoding=\"async\" width=\"720\" height=\"405\" src=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit.png\" alt=\"Stick figure correctly answering questions in an interview\" class=\"wp-image-40390\" style=\"width:720px;height:405px\" srcset=\"https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit.png 720w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit-300x169.png 300w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit-400x225.png 400w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit-624x351.png 624w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit-50x28.png 50w, https:\/\/finance-able.com\/wp-content\/uploads\/2021\/07\/Financeable-analyst-starter-kit-100x56.png 100w\" sizes=\"auto, (max-width: 720px) 100vw, 720px\" \/><\/figure>\n<\/div>\n\n\n<div class=\"wp-block-advgb-list\"><ul class=\"advgblist-8f268e11-b330-4c52-b989-ae96c78269fe\">\n<li>We have created the <strong>ultimate free resource<\/strong> for <strong>aspiring Finance Analysts<\/strong> with our <a href=\"https:\/\/finance-able.com\/analyst-starter-kit\/\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Finance Analyst Starter Kit<\/span><\/strong><\/a>.<\/li>\n\n\n\n<li>We have <strong>Free<\/strong>, <strong>Plain English<\/strong> <strong>articles<\/strong> and <a href=\"https:\/\/youtube.com\/playlist?list=PLJ2yVq7yYUT8u1j4SaSdk1tr-3dd62EuV\" target=\"_blank\" rel=\"noreferrer noopener\"><strong><span class=\"has-inline-color has-vivid-cyan-blue-color\">Animated Explainer Videos<\/span><\/strong><\/a> on:<ul><li><strong><u>Who<\/u><\/strong> the <strong>core players<\/strong> are in the <strong>Finance world <\/strong>and <strong><u>how<\/u><\/strong> <strong>they operate<\/strong>.<\/li><\/ul><ul><li><strong>Core mental frameworks<\/strong> for learning <strong>Valuation<\/strong> and <strong>Returns<\/strong> <strong>Analysis<\/strong>.<\/li><li>Reviews of <strong>common trouble topics<\/strong> based on our <strong>experience training thousands of students<\/strong>.<\/li><li>Detailed<strong> walkthroughs <\/strong>of<strong> common Interview Questions<\/strong>.<\/li><\/ul><\/li>\n<\/ul><\/div>\n\n\n<div class=\"yoast-breadcrumbs\"><span><span><a href=\"https:\/\/finance-able.com\/\">Home<\/a><\/span> \u00bb <span class=\"breadcrumb_last\" aria-current=\"page\">LTM Revenue (and EBITDA) in 3 Steps \u2013 The Ultimate Guide<\/span><\/span><\/div><style class=\"advgb-styles-renderer\">.wp-block-advgb-list ul.advgblist-7a32e15a-6158-46ff-b0b6-c5107d7ae1dd > 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            "text": "To <strong>calculate LTM Revenue<\/strong>, we: <br\/>1) <strong>find<\/strong> the <strong>Latest Annual Financial data<\/strong><br\/>2) then <strong>add<\/strong> the <strong>latest Year-To-Date<\/strong> Financial data, and <br\/>3) <strong>Subtract<\/strong> the <strong>Year-To-Date <\/strong>Financial data for the <strong>same period<\/strong> in the <strong>prior year<\/strong>.<br\/>",
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            "text": "<strong>LTM<\/strong> (or \u2018<strong>Last Twelve Months<\/strong>\u2019) calculations <strong>reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of <strong>Financial performance <\/strong>and have various applications in the Finance world across Investment Banking, Private Equity, and Investment Management.<br\/>",
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            "text": "<strong>LTM<\/strong> stands for \u2018<strong>Last Twelve Months<\/strong>,\u2019 and it <strong>refers to calculations<\/strong> that <strong>show<\/strong> the <strong>most recent Twelve Months<\/strong> of Financial <strong>performance<\/strong> (e.g. LTM Revenue and LTM EBITDA).<br\/>",
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            "text": "<strong>TTM<\/strong> stands for \u2018<strong>Trailing Twelve Months<\/strong>\u2019 and it <strong>refers to calculations<\/strong> that <strong>show<\/strong> the <strong>most recent twelve months<\/strong> of Financial <strong>performance<\/strong> (e.g. LTM Revenue and LTM EBITDA). The term is <strong>interchangeable<\/strong> with <strong>LTM<\/strong> or \u2018<strong>Last Twelve Months<\/strong>\u2019.<br\/>",
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            "text": "<strong>TTM<\/strong> stands for \u2018<strong>Trailing Twelve Months<\/strong>\u2019 and it <strong>refers<\/strong> to <strong>calculations<\/strong> that <strong>show the most recent Twelve Months<\/strong> of Financial Performance (e.g. TTM Revenue and TTM EBITDA).<br\/>",
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            "text": "<strong>LTM<\/strong> stands for \u2018<strong>Last Twelve Months<\/strong>\u2019 and <strong>reflects<\/strong> the <strong>most recent Twelve Months<\/strong> of Financial <strong>performance<\/strong>. <strong>NTM<\/strong> stands for \u2018<strong>Next Twelve Months<\/strong>\u2019 and <strong>reflects<\/strong> a Business's <strong>estimated Financial performance<\/strong> for the <strong>upcoming Twelve Months<\/strong>.<br\/>",
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            "text": "<strong>LTM Revenue<\/strong> and <strong>TTM Revenue <\/strong>are <strong>interchangeable<\/strong> terms. <strong>Both reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of <strong>Revenue<\/strong> generated by a <strong>Business<\/strong>.<br\/>",
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          "name": "What is LTM EBITDA? What is TTM EBITDA?",
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            "text": "<strong>LTM Revenue <\/strong>and <strong>TTM EBITDA<\/strong> are <strong>interchangeable<\/strong> terms. <strong>Both reflect<\/strong> the <strong>most recent Twelve Months<\/strong> of <strong>EBITDA<\/strong> generated by a <strong>Business<\/strong>.<br\/>",
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            "text": "<strong>EV\/LTM Revenue<\/strong> is a <strong>commonly used Valuation Multiple<\/strong> that looks at the <strong>Purchase Price<\/strong> (\u2018Enterprise Value\u2019 or \u2018EV\u2019) of the <strong>entire Business relative to<\/strong> the last twelve months (\u2018LTM\u2019) of <strong>Revenue<\/strong> generated by the <strong>Business<\/strong>.<br\/>",
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            "text": "<strong>EV\/LTM EBITDA<\/strong> is a <strong>commonly used Valuation Multiple <\/strong>that looks at the <strong>Purchase Price <\/strong>(\u2018Enterprise Value\u2019 or \u2018EV\u2019) of the <strong>entire Business relative<\/strong> to the last twelve months (\u2018LTM\u2019) of <strong>EBITDA<\/strong> generated by the <strong>Business<\/strong>.<br\/>",
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