When performing valuation analyses, understanding the time reference behind transaction multiples is essential for consistency and accuracy.
What Time Period Do Our Multiples Reflect?
The transaction multiples available on Valutico are typically based on the Last Twelve Months (LTM) of financial data. This is the industry standard and provides a realistic picture of a company’s recent financial performance.
Most of the transaction data we use comes from trusted providers, such as CapitalIQ and other premium financial databases. These providers generally calculate transaction multiples using LTM financials—unless specifically stated otherwise.
How Are Multiples Applied in Valutico?
While the multiples are based on LTM data, Valutico applies them to the actual last full financial year (e.g., FY2023). This choice ensures consistency across valuations and aligns better with the reported annual figures users typically input or review.
We do not apply forward-looking (projected) multiples by default, as they rely on future expectations and may introduce forecasting bias or inconsistencies across data sources.
CapitalIQ’s Methodology
CapitalIQ, our primary transaction data provider, calculates multiples based on their own standardized methodology. In most cases, this also involves the use of LTM financials. You can find more detailed definitions of CapitalIQ’s metrics directly within their documentation.