LTM stands for Last Twelve Months. LTM multiples are calculated by applying a company's current market valuation to its financial performance metrics from 12 months prior to the valuation date.
LTM multiples offer a more precise basis for market-based valuations by reflecting the latest financials rather than relying solely on prior fiscal year data. This enables more reliable peer comparisons and valuation outputs, especially for companies with recent shifts in performance.
How to Use the LTM Feature
The LTM multiples feature directly impacts your workflow in three key areas of the Valutico platform:
Peer Selection
When conducting your comparable company analysis, you can now access four new LTM-based columns to your peer selection table:
EV/Sales LTM
EV/EBITDA LTM
EV/EBIT LTM
P/E LTM
These columns display the relevant valuation multiples (EV/Sales, EV/EBITDA, EV/EBIT, and P/E) for the selected public peers, calculated using their latest available LTM financial data (Sales, EBITDA, EBIT and Net Income) for the 12-month period as of the Valuation Date.
Forecast
Within the Forecast module (formerly ValuPlan), you will find a new dedicated tab labelled LTM.
Navigate to Forecast.
Click on the LTM tab.
Here, you can review the LTM figures for Net Sales, EBITDA, EBIT, and Net Income for the Subject Company. By default, the last actual year data is used to populate the LTM column.
You can also manually override these values. If you have different figures, simply type them into the input fields to adjust the basis for the LTM multiple calculations.
Valuation Overview
The Valuation Overview screen will display the values calculated by applying the LTM peer multiples to your subject company's LTM financials.
Go to the Valuation Overview.
Under the Valuation Methods, you can enable four new valuation methods under Trading Multiples: EV/Sales LTM, EV/EBITDA LTM, EV/EBIT LTM and P/E LTM.
These results are fully integrated into the summary charts, tables and exports, allowing you to compare them alongside other valuation methods.