NTM EV/REVENUE and EV/EBITDA
Hi guys,
I came across an article on "the footnote analyst" about EV/EBITDA and it is throwing me into a loop.
When looking at NTM (or future periods) do you forecast both numerator and denominator? I thought you would only forecast the numerator when looking at future periods.
No,EV is always current market and the deminator is changing to see how the company is trading currently for example on future EBITDA, etc.
thanks! makes sense
You are trying to calculate current value based on future operating metrics. So you only use NTM revenue or EBITDA but EV is as if today.
Think like LTM, you wouldn’t take EV 1 year ago right? Same here
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