Financial Analysis
Trailing Twelve Months (TTM)
The most recent 12-month period of financial data, used as the primary basis for valuation because it reflects current business performance rather than prior calendar-year results.
A measurement period comprising the 12 consecutive months ending on the most recent available reporting date. TTM figures are constructed by taking the prior full fiscal year, adding the current year-to-date results, and subtracting the comparable prior-year period. In small business acquisitions, TTM is the standard period applied to revenue, SDE, and EBITDA when computing valuation multiples, because it captures current operating conditions rather than a completed calendar year that may no longer reflect the business's present state. (Also see SDE, Adjusted EBITDA, Valuation Multiple.)