Which to use for comparable comps and precedent transactions EV/LTM EBITDA multiple, or EV/NTM EBITDA mutiple and Why?
In the news report, when they say company A bought company B at an EBITDA multiple of 10x. Are they usually referring to LTM EBITDA multiple or NTM EBITDA multiple and why do they choose report the one versus the other?
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Not sure what multiples new sources use, but I bet it varies.
For comps models almost always use the forward multiples.
From what I've experienced, precedent is EV/LTM EBITDA and comps are usually EV/'16E EBITDA or possibly NTM EBITDA, I haven't really seen LTM for comps it's usually forward looking.
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