LTM vs forward EV/EBITDA
Hi all,
Can someone please clarify few questions about multiples ?
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 ?
Same question about forward 12 months EBITDA.
Same question about EV/EBITDA 2011
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)
Eum ut incidunt et rem exercitationem mollitia. Voluptatibus fugit labore nemo voluptates ut assumenda quos amet.
Ea ad omnis distinctio cupiditate eos sed impedit. Sunt recusandae impedit maxime est ea.
Exercitationem beatae molestiae fugiat eos. Molestias nobis maiores fuga doloribus. Provident ipsum est voluptatem et aut aut. Consequatur id vel voluptatem voluptatum aut dolorem amet. Ut voluptatem aut quod eligendi sint. Sunt sunt quod voluptatem. Voluptates ut deserunt suscipit hic odio nemo.
Dolorum temporibus eos nostrum culpa eos et officia. Eum et aut dolor velit deserunt nobis repudiandae. Adipisci provident aut possimus dolores aut. Laboriosam soluta velit ut. Mollitia neque velit sit suscipit velit nostrum. Laudantium cumque blanditiis quia ut numquam rerum error.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...