LTM vs forward EV/EBITDA
Hi all,
Can someone please clarify few questions about multiples ?
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How is LTM EV/EBITDA (P/E etc) calculated ? Suppose you are in May 15th 2010. Latest published quarterly results are in March 31st 2010 and annual 2009. How exactly do I get last twelve months EBITDA ?
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Same question about forward 12 months EBITDA.
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Same question about EV/EBITDA 2011
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How do you calendarize ? Say you are in May 15th. The company's FY is March 31st. Please elaborate.
Thanks, really appreciated!
LTM Take the March K number EBITDA + Q1 2010 EBITDA - Q1 2009 EBITDA...make sure the method you use for EBITDA is apples to apples
For forward year, it depends if you are doing FY or CY. CY would be easier since you can use analyst reports or consensus estimates.
LTM #s are always based on reported data (e.g. don't try to adjust for the time since last reported quarter) 1. LTM EBITDA = 2009 EBITDA + 2010 Q1 EBITDA - 2009 Q1 EBITDA 2. EBIDAs of Q2 2010 + Q3 2010 + Q4 2010 + Q1 2011 (FY2010 - Q1 2010 + Q1 2011, assuming 12/31 FY) 3. If company's fiscal year = calendar year, then take analyst consensus for FY2011 EBITDA. Otherwise, get quarterly estimates from analyst research and adjust accordingly (see below) 4. For instance, if FY2012 ends 3/31/12 and you want CY12: FY2012 ends 3/31/2012, so you need FY2013 + Q4 FY12 - Q4 FY13)
Above poster is spot on as well.
NB: Calendarization gets really fun when quarters don't end on calendar quarters (e.g. a 1/31/xx FYE)
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