NTM (Next Twelve Months) | Eqvista (2024)

The NTM (Next Twelve Months) is the next twelve months from the current date. Financial measures such as the net income, EBITDA, or revenue of the next twelve months predicted are the NTM. High growth businesses that have recently installed new product lines or taken over new acquisitions use the NTM EBITDA to determine or forecast the company’s forthcoming performance.

The next twelve months will show the predicted performance of additions like an acquisition and new products. NTM is opposite to the commonly used LTM (Last Twelve Months) metric. The LTM indicates past performance, whereas the NTM predicts future performance. The predicted valuation figures serve as a justification for the major purchases made by incorporation.

Let us take an example of ABC Ltd. They have just gone through a rough year. Their trailing twelve months is $7 million, $4 million less than their previous NTM prediction of $11 million.

The company’s EV / EBITDA would have been 2.5x if it was sold to Paul for $28 million, but the present EV / EBITDA is 4x. Paul will use the lower multiple here, which is 2.5x. A lower multiple makes a more reasonable argument about the value of the company not only to the shareholders and board but also to the banks. This is so because a lower multiple means a lower cost.

Business owners with mid-market businesses should know this in detail and prepare an adequate financial forecast for all the NTM metrics. If the seller is able to justify the lower multiple valuations with the aimed purchase price, there is a higher chance of the deal closing time improving.

NTM (Next Twelve Months) | Eqvista (2024)

FAQs

What is NTM next twelve months? ›

The NTM (Next Twelve Months) is the next twelve months from the current date. Financial measures such as the net income, EBITDA, or revenue of the next twelve months predicted are the NTM.

What does NTM mean month? ›

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.

What does ntm mean multiple? ›

Multiples denoted as NTM means the selected metric is based on the projected performance in the coming twelve months. Therefore, a NTM multiple is considered a “forward multiple”, since the valuation is based on a forecast, rather than actual historical financial results.

How do you calculate last 12 months? ›

How to Calculate LTM Revenue (Step-by-Step)
  1. Step 1: Find the Last Annual Filing Financial Data.
  2. Step 2: Add the Most Recent Year-to-Date (YTD) Data.
  3. Step 3: Subtract the Prior Year YTD Data Corresponding to the Prior Step.

How serious is NTM? ›

The NTM infection in the lungs causes scarring, fibrosis and the formation of cavities or pits in the lung tissue. This damage can lead to respiratory failure. This form is most commonly found in people with a smoking history who also have existing lung disease such as COPD or bronchiectasis.

Can NTM go away? ›

Once you have a diagnosis of an NTM infection, you will be closely monitored. NTM infections continue because phlegm gets trapped in the lungs. Chest physiotherapy and regular exercise can help NTM infections go away without treatment.

What are the 12 months abbreviations? ›

March, April, May, June and July are never abbreviated in text, but the remaining months are when they are followed by a date (Jan. 27), and are correctly abbreviated Jan., Feb., Aug., Sept., Oct., Nov., Dec. The semester begins in September. The semester begins in September 2012.

What is the full form of NTM in slang? ›

The term NTM has multiple possible meanings, but it often stands for 'Not Too Much. ' You might see people commenting this under their friends' videos, or using it in a video caption, or direct message.

Does NTM mean nothing much? ›

NTM: It generally refers to Not Too Much or Nothing Much. NTM can also mean Not to Mention or Next To Me depending on the context it is used. If someone says NTM to 'What's up?' it means Nothing Much.

What does NTN mean in texting? ›

NTN is an acronym that means no thanks needed. It is used similarly to the NP acronym to say that he or she does not require thanks for helping.

What does NTM mean stocks? ›

Financial analysts use Last Twelve Months (LTM) or Next Twelve Months (NTM) and a number of different valuation multiples when evaluating corporate deals.

What does NTM in finance mean? ›

NTM EV/EBITDA is a financial metric often used by buyers to assess the reasonability of a target's valuation. It is actually a combination of the following three terms: "NTM" — next twelve months; "EV" — enterprise value; and. "EBITDA" — earnings before income taxes, depreciation, and amortization.

What does within the last 12 months mean? ›

Last twelve months (LTM) refers to the timeframe of the immediately preceding 12 months. It is also commonly designated as trailing twelve months (TTM). LTM is often used in reference to a financial metric used to evaluate a company's performance, such as revenues or debt to equity (D/E).

What does proceeding 12 months mean? ›

Related Definitions

preceding twelve months means the twelve months immediately preceding the date the allegedly proscribed act took place.

Does last 12 months include current month? ›

In other words, if you are running your trailing 12 months reports in July 2020, your starting date will be July 1, 2019. Your ending date will be the last day of the month just completed — in this example, June 30, 2020.

What is the life expectancy of someone with NTM? ›

A retrospective chart review of patients from Oregon, USA with respiratory NTM isolates found that the median time to death was 3.6 (range 0–7.7) years for cases meeting ATS/IDSA diagnostic criteria [2] and 3.7 (range 0.0–8.6) years for those who did not (p = 0.63).

What is the cure rate for NTM? ›

Cure was achieved in 46.7% on TB and 75% on NTM therapy.

What is the mortality rate of NTM? ›

Specifically, for the different NTM groups, the 8-year mortality rates were highest in the MK group (59.2%), followed by the MAC group (45.2%) and the MABC group (44.8%).

How long does it take to get rid of Mycobacterium? ›

Recovery can take 12 months or more with antibiotic treatment. It's important to see your provider regularly during treatment. As you're recovering, you may feel tired and have a cough that does not go away. Making lifestyle changes like exercising and improving your nutrition can help ease these symptoms.

Is NTM lung disease rare? ›

What is nontuberculous mycobacteria (NTM) lung disease? This rare condition occurs when nontuberculous mycobacteria (NTM) causes a lung infection.

Can Mycobacterium come back? ›

The recurrence rate of Mycobacterium avium complex (MAC) lung disease (LD) after successful treatment is approximately 10–48% [1–3].

Why do we use 12 months? ›

Why are there 12 months in the year? Julius Caesar's astronomers explained the need for 12 months in a year and the addition of a leap year to synchronize with the seasons. At the time, there were only ten months in the calendar, while there are just over 12 lunar cycles in a year.

How do you write 12 months in English? ›

January, February, March, April, May, June, July, August, September, October, November and December. January, February, March, April, May, June, July, August, September, October, November, December.

What is the correct abbreviation for months? ›

Months. Abbreviations are acceptable for Jan., Feb., Aug., Sept., Oct., Nov., and Dec. Use no punctuation if listing only the month and the year, but set the year off with commas if listing the day of the month as well.

What does NTM mean on snap? ›

"Not Too Much or Nothing Much" is the most common definition for NTM on Snapchat, WhatsApp, Facebook, Twitter, Instagram, and TikTok. NTM. Definition: Not Too Much or Nothing Much.

What does NVM mean from a girl? ›

NVM is an acronym that means never mind. It's often used as a hashtag.

What does NMT mean in texting? ›

"Not My Type" is the most common definition for NMT on Snapchat, WhatsApp, Facebook, Twitter, Instagram, and TikTok.

What happens if NTM is not treated? ›

In some people, however, NTM infects the airways and lung tissue and causes an infection. Without treatment, many people will develop a progressive lung infection. Cough, shortness of breath, fatigue, and often weight loss are symptoms.

Should NTM be treated? ›

If your symptoms are severe, or you have the cavitary form of NTM lung disease, your doctor may want to begin treatment immediately. The standard treatment for most NTM infections is a combination of two or more antibiotics, taken over many months.

Can NTM turn into TB? ›

NTM does not cause tuberculosis (TB), and unlike TB, which is spread from person to person, NTM is not contagious.

What does NTM mean in finance? ›

Financial analysts use Last Twelve Months (LTM) or Next Twelve Months (NTM) and a number of different valuation multiples when evaluating corporate deals.

What is a 12-month trailing return? ›

Key Takeaways. Trailing 12 months (TTM) is the term for the data from the past 12 consecutive months used for reporting financial figures. A company's trailing 12 months represents its financial performance for a 12-month period; it does not typically represent a fiscal-year ending period.

What is a trailing 12-month average? ›

Trailing Twelve Months is a phrase used to indicate the previous 12 consecutive months of a company's financial data, leading up to the time that a report of that data is generated.

What is NTM vs LTM? ›

LTM stands for 'Last Twelve Months' and reflects the most recent Twelve Months of Financial performance. NTM stands for 'Next Twelve Months' and reflects a Business's estimated Financial performance for the upcoming Twelve Months.

What is multiple of NTM net income? ›

What Does NTM Multiple Mean? The NTM multiple refers to the multiple that would be applied to the next twelve months of a particular financial measure such as revenue, EBITDA or net income.

Is rolling 12 months the same as trailing 12 months? ›

LTM (Last Twelve Months), also sometimes known as the trailing or rolling twelve months, is a time frame frequently used in connection with financial ratios, such as revenues or return on equity (ROE), to evaluate a company's performance during the immediately preceding 12-month time period.

What is trailing 12 months example? ›

Example. If a Company reports $1 million in quarterly revenue in 3/31/2000, a $10 million yearly revenue on 12/31/2000, and $4 million quarterly revenue in 3/31/2001, the trailing twelve months revenue is calculated as $13 million as follows.

Why is the trailing twelve months important? ›

By using TTM, analysts can evaluate the most recent monthly or quarterly data rather than looking at older information that contains full fiscal or calendar year information. TTM charts are less useful for identifying short-term changes and more useful for forecasting.

How do you write a 12 month rolling average? ›

How do you calculate a rolling average?
  1. Determine your time period. ...
  2. Collect the data. ...
  3. Add your earliest totals. ...
  4. Divide the total by your time period. ...
  5. Calculate the average for your next rolling period. ...
  6. Continue the formula for each rolling period. ...
  7. Complete the formula regularly.
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