When to use different multiples
When are you supposed to use different multiples such as LTM vs a FY end multiple (i.e. 2019 revenue). Couldn't LTM be under/overstated depending on the quarter the business recently reported? (For example, if Q2 is usually a slower quarter for the business and you use a LTM multiple, your basically counting Q2 twice so wouldn't your revenue be understated compared to FY end multiple?) Is it more advantageous to use LTM for less cyclical companies? Also do earnings multiples matter more than rev multiples or are they equally important
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