What is the difference between LTM and forward multiples for Precedent Transactions?

EV / EBITDA for the last 12 months before the deal announcement. Robust, based on historical figures. NTM multiple (forward): EV / EBITDA for the next 12 months from the deal announcement, from consensus forecast or the management plan. IB standard: LTM is the primary multiple for precedents (unlike Trading Comps, where NTM dominates). Reason: LTM is the number the buyer historically used for its valuation — based on realized performance.

Forward figures can be set too inconsistently. Pitfall: if the target had an anomaly in the deal year (an acquisition, a large one-off order), LTM is distorted — some bankers use a 'mid-year' multiple or 'run-rate' EBITDA.