Next Twelve Months (NTM) refers to any financial measure such as revenue, EBITDA, or net income that is being forecasted for the immediate next twelve months from the current date. NTM is the direct opposite of Last Twelve Months (LTM) which measures the historical financial performance for the twelve-month period prior to the current date.
NTM estimates calculation
NTM estimates combines the estimates for the current fiscal period and the next one, weighted to reflect the relative proximity of the fiscal year end date (calculation process known as calendarization).
Infront Analytics provides full transparency on calculation formulae for NTM estimates. Just click the estimates figure to open the formula viewer.
NTM estimates benefits
NTM estimates are most commonly used to calculate NTM valuation multiples. They are useful because they facilitate comparison of companies with different fiscal year-ends.
In addition, analyzing estimates revisions over a long period is difficult because there is a separate estimates history for each fiscal year. This problem is solved with NTM estimates that are continuous by nature.
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