Module VI· Trading Comps Model BuildIntermediate
Question
How do you calculate LTM correctly?
Answer
LTM equals latest fiscal year plus current year-to-date period minus prior year comparable year-to-date period. Example: FY 2025 + Q3 2026 YTD - Q3 2025 YTD. This updates annual results for the latest reported quarters. Ensure one-time items and discontinued operations are treated consistently.