TTM Calculator (Trailing Twelve Months)

The TTM Calculator adds the latest four quarters to produce a trailing twelve months figure. It can return a general TTM value, TTM EPS, a price-to-earnings ratio based on TTM EPS, EV divided by TTM EBITDA, or a TTM dividend yield. The core calculation is always the same: sum the most recent quarter, one quarter ago, two quarters ago, and three quarters ago. The selected mode determines what the calculator does with that rolling total.

TTM analysis is useful because public companies report annual results only once a year but release quarterly updates throughout the year. A fiscal year number can become stale after a new quarter arrives. TTM keeps the measurement window at roughly one year while adding the newest quarter and dropping the oldest quarter outside the window.

How to use this calculator

Choose the TTM metric mode first. For a general value, enter the latest four quarters for revenue, EBITDA, operating cash flow, free cash flow, or another cumulative metric. For TTM EPS, enter the four quarterly EPS figures. For P/E, enter quarterly EPS and a current share price. For EV / TTM EBITDA, enter the four quarterly EBITDA figures and enterprise value. For dividend yield, enter dividends per share for the four quarters plus the current share price.

The calculation accepts negative quarterly values because real companies can report losses, negative EBITDA, or negative cash flow. It rejects missing or non-numeric quarter entries. P/E mode additionally requires share price to be positive and TTM EPS to be nonzero. EV / TTM EBITDA mode requires enterprise value to be non-negative and TTM EBITDA to be nonzero. Dividend yield mode requires share price to be positive. Use the resulting TTM figure in sibling valuation tools such as the EBITDA Multiple Calculator, the EV to Sales Calculator, and the Price to Cash Flow Ratio Calculator.

Formula

The base TTM calculation is:

$\text{TTM value} = \text{most recent quarter} + \text{one quarter ago} + \text{two quarters ago} + \text{three quarters ago}$

For P/E from TTM EPS:

$\text{P/E} = \frac{\text{share price}}{\text{TTM EPS}}$

For EV divided by TTM EBITDA:

$\text{EV/TTM EBITDA} = \frac{\text{enterprise value}}{\text{TTM EBITDA}}$

For TTM dividend yield:

$\text{TTM dividend yield} = \frac{\text{TTM dividends per share}}{\text{share price}} \times 100\%$

The result items always show the most recent quarter, the sum of the prior three quarters, and the quarter average. Mode-specific items add share price, enterprise value, TTM EPS, TTM EBITDA, or TTM dividends per share as needed.

Checking the primary result

Start with general TTM value mode and the default quarter inputs: 125,000 dollars for the most recent quarter, 118,000 dollars for one quarter ago, 114,000 dollars for two quarters ago, and 109,000 dollars for three quarters ago. The calculator sums them:

$\text{TTM value} = \$125{,}000 + \$118{,}000 + \$114{,}000 + \$109{,}000 = \$466{,}000$

It also calculates the prior three quarters line:

$\text{prior three quarters} = \$118{,}000 + \$114{,}000 + \$109{,}000 = \$341{,}000$

And the quarter average:

$\text{quarter average} = \frac{\$466{,}000}{4} = \$116{,}500$

In general value mode, the primary label is trailing twelve-month value and the primary value is 466,000 dollars. The note lists the four quarter values in order and states that they equal 466,000 dollars.

For P/E mode, suppose the four EPS inputs are 1.20 dollars, 1.10 dollars, 0.95 dollars, and 1.05 dollars, with a share price of 50 dollars. TTM EPS is 4.30 dollars and the P/E ratio is:

$\text{P/E} = \frac{\$50.00}{\$4.30} = 11.6279$

The calculator displays 11.63. For EV / TTM EBITDA mode, if quarterly EBITDA is 70,000 dollars, 65,000 dollars, 62,000 dollars, and 60,000 dollars, TTM EBITDA is 257,000 dollars. With enterprise value of 2,500,000 dollars, the multiple is 9.73 after rounding. For dividend yield mode, quarterly dividends of 0.25, 0.25, 0.24, and 0.24 dollars per share sum to 0.98 dollars. Dividing by a 40 dollar share price gives 2.45%.

How analysts use TTM

Analysts use TTM figures to keep valuation denominators current. EV/EBITDA based on the last fiscal year may ignore a recent acquisition, downturn, or recovery. P/E based on stale EPS may miss a sharp earnings change. TTM revenue can make a sales multiple more comparable when companies have different fiscal year ends. Dividend investors use TTM dividends per share to compare recent cash distributions with the current share price.

TTM is also useful for trend analysis. Comparing the current TTM value with the prior TTM value smooths seasonality better than comparing one quarter alone. Retailers, travel companies, and other seasonal businesses may have large quarter swings, but a rolling four-quarter total keeps a full seasonal cycle in view. To connect TTM outputs to specific ratios, use the EBITDA Margin Calculator, the Price per Share Calculator, and the business valuation calculator.

Caveats and interpretation

TTM is not a forecast. It is historical, even though it is more current than the last fiscal year. A company that just lost a major customer or completed a large acquisition may have a TTM figure that does not represent the next twelve months. Quarterly figures can also be restated, and companies sometimes change segment definitions or accounting policies. Use the latest consistent filings.

Be careful with per-share versus total metrics. EPS and dividends per share are already per-share numbers, while revenue, EBITDA, and cash flow are usually total company figures. Do not add revenue dollars to EPS dollars. Also remember that the calculator displays currency formatting for the quarter fields even in EPS and dividend modes. That is a formatting limitation, not permission to mix units.

Sources

• CFI, Trailing Twelve Months — TTM meaning, formula, and rolling-period use.
• NYU Stern, Value to EBITDA by industry — industry EBITDA multiple data where TTM EBITDA is commonly used as a denominator.