NTM (Next Twelve Months)

What Is NTM (Next Twelve Months)?

NTM stands for Next Twelve Months — the forward-looking twelve-month period starting from the current date or a specified reference point. In M&A and investment banking, NTM is most commonly used as the denominator in valuation multiples: EV/NTM Revenue and EV/NTM EBITDA.

Where LTM (Last Twelve Months) reflects what a business has already produced, NTM reflects what buyers believe it will produce. For high-growth companies, recently restructured businesses, or targets with visible revenue ramp-ups in progress, NTM multiples are often more appropriate than LTM because they capture the forward earnings trajectory that is actually driving the buyer’s willingness to pay.

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NTM in M&A Valuation

In a comparable company analysis, NTM multiples are derived from analyst consensus estimates for each public comp company. The implied NTM EBITDA multiple for the comp set then applies to the target company’s projected EBITDA to generate an implied enterprise value.

Example:

• Target company projected EBITDA (NTM): $12M
• Comparable company NTM EV/EBITDA trading range: 9x–13x
• Implied Enterprise Value: $108M–$156M

This calculation is materially different from an LTM-based analysis when the business is growing quickly. A company with $8M LTM EBITDA growing to $12M NTM EBITDA is worth more on an NTM basis — and experienced buyers know to model forward, not backward.

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When to Use NTM vs. LTM

Advisors choose between LTM and NTM depending on the business situation:

Use LTM when:

• The business has stable, predictable earnings and no significant growth inflection
• Forward projections are uncertain or management-prepared estimates are not credible to buyers
• The transaction is primarily an asset deal or distressed situation where historical performance is the reference point

Use NTM when:

• The business is growing and NTM earnings are materially higher than LTM
• A recent restructuring or cost program will improve EBITDA in the forward period
• Comparable public companies are priced on consensus NTM estimates (common in tech and services)
• The investment thesis centers on forward earnings power rather than historical performance

In a pitchbook or CIM, it is common to present both LTM and NTM multiples side by side to give buyers a complete picture.

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NTM Multiples in Practice

For public market comparables, NTM estimates come from Wall Street analyst consensus — aggregated by Bloomberg, FactSet, or Capital IQ. These estimates reflect market expectations and are the standard reference point when building a trading comp table.

For private company targets, “NTM” typically refers to management projections for the next twelve months. Experienced advisors know that management projections require scrutiny: buyers will apply their own discount to management EBITDA estimates, particularly if there is limited track record of hitting forecast.

The appropriate NTM adjustment — and how defensible it is — is one of the more consequential judgment calls in sell-side advisory.

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NTM vs. Forward EBITDA

The terms NTM and “forward EBITDA” are often used interchangeably, but there is a subtle distinction. NTM is a rolling twelve-month window; “forward EBITDA” can refer to the next fiscal year (which may be a calendar year rather than a rolling period). For companies with seasonal or calendar-year-aligned financials, the difference can be material. Clarify which definition is in use when presenting valuation analysis.

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Related Terms

• LTM (Last Twelve Months) — the historical counterpart to NTM
• Comparable Company Analysis — uses NTM multiples from public peers
• Precedent Transaction Analysis — uses LTM multiples at deal close
• Revenue Multiple — another metric where NTM projections apply
• Adjusted EBITDA — the profit figure most commonly used in NTM multiples