2.2·5 min read
Gathering the Data
Pull each peer's financials from filings and consensus estimates, on a consistent LTM and forward (NTM) basis.
By the end you can
- ✓Identify data sources
- ✓Distinguish LTM from NTM multiples
- Filings (10-K, 10-Q, 8-K earnings) for historical figures.
- Consensus estimates / equity research for forward metrics.
- Market data for share price and shares to compute market cap and .
LTM vs. NTM
Comps are usually shown on a last-twelve-months (LTM) basis and a next-twelve-months (NTM) forward basis. Forward multiples matter most for fast-growing companies, where trailing numbers understate the business.
Check yourself
Why also compute forward (NTM) multiples, not just trailing (LTM)?