TTM stands for Trailing Twelve Months.

The term for the information from the previous 12 straight months used for reporting financial numbers is "trailing 12 months" (TTM).
The trailing 12 months of a firm's financial performance over a 12-month period; it often does not correspond to a fiscal year-ending period.
Investors can find a compromise that is both current and seasonally adjusted by looking at the last 12 straight months.
Regardless of when the fiscal year ends, firm financials can be routinely examined both internally and externally using trailing 12-month statistics.
TTM enables similar comparisons of a business' performance trajectory, eliminating inconsistencies.

Understanding the Trailing Twelve Months (TTM)

TTM is used by analysts and investors to analyse a broad range of financial data, including balance sheet numbers, income statements, and cash flows. Various financial statements may use different methods for determining TTM data.
Some experts in the field of stock research publish earnings on a quarterly basis, while others do so on an annual basis. However, because TTMs are more recent and are corrected for seasonality, investors who want daily information about stock prices and other current data may view them as more pertinent gauges.

Financial ratios can also be computed using TTM data. The price-to-earnings ratio, or P/E (TTM), is determined by dividing the stock's current price by its trailing 12-month earnings per share (EPS).

Compared to a similar measurement from a previous term to determine how much growth was realised makes up a large portion of fundamental analysis. For instance, while a company reporting 100 crore in sales is unquestionably outstanding, this feat is made even more noteworthy if the company's sales climbed from 50 crore to 100 in the previous 12 months. This significant improvement offers a clear picture of the company's potential for growth.

What is TTM EPS?

Now we know about TTM, let's understand TTM EPS. So TTM EPS is Trailing Twelve Month Earnings Per Share.

When calculating a company's earnings per share, the profits or earnings of the corporation are divided by the total number of shares of stock that are currently in circulation (TTM). Earnings Per Share are abbreviated as "EPS," and "TTM" stands  for "Trailing Twelve Months." Therefore, TTM EPS is a representation of the overall profits or earnings that the company has generated over the course of the preceding year. It is not guaranteed that this will always coincide with the fiscal year or calendar year of the company. If you examine this figure in the month of July, for example, it will reflect all earnings that have been accrued since July of the year before.
If you examine this figure in the month of July, for example, it will reflect all earnings that have been accrued since July of the year before.

What does EPS TTM mean for investors?

A positive earnings per share (EPS) number isn't the only thing that investors look for when making investment decisions; they also make an effort to figure out whether a company's profits are healthy and growing or whether they are stagnating or falling. Despite the fact that this is a difficult question, the answer may be found in the income statement in the majority of circumstances.  Earnings are also referred to as "net income" in the income statement, which is located under the headline "Financial Statements" in the financial report. According to the number that is displayed on the summary page, this is a promising sign that the company's profits are growing over the course of time. This is a great signal. This raises the possibility that growth will continue, but it does not ensure that the company will continue to grow or that its stock price will go up.

Earnings must be reported on a quarterly basis by companies, which means they do so every three months. The vast majority of them do so following the conclusion of each of the calendar quarters in the months of April, July, October, and January, respectively. A few businesses choose to disclose their financial results every three months rather than in the calendar quarters.

Even while earnings per share (TTM) do not offer a complete picture of a company's financial performance, they are useful for rapidly determining whether or not a business is successful. If one examines the bottom line of the income statement of a corporation, one may obtain a great deal of information regarding whether or not the earnings of the company are growing. EPS is a helpful starting point for further research before  investing in a company because, on average, the price of a stock and its earnings growth should be favourably connected with one another.

Where to Find the TTM Measures ?

In order to comply with generally accepted accounting principles (GAAP), the 12-month (TTM) metric is normally presented on a company's balance sheet, which is typically updated on a quarterly basis. However, some analysts choose to average the first quarter and the last quarter.

What is TTM revenue ?

TTM Revenue is the word that is used to describe the revenue that a firm has generated throughout the course of its operations during the most recent 12 months. This information is essential for determining whether or not a company has had considerable increase in its top line and can pinpoint the particular source of that growth.

On the other hand, the profitability of a company and its ability to generate earnings before interest, tax, depreciation, and amortisation(EBIDTA) frequently eclipse this figure.

How to Calculate Trailing Twelve Months (TTM)?

The trailing twelve months computations will differ depending on the financial metric being studied. In general, TTM computations will either be

1) total the values from the past 12 months (or four quarters) or

2) take the average or weighted average of the figures from the preceding 12 months.

What is TTM Price/Earning Ratio ?

TTM is also used to calculate a company's trailing P/E ratio. The trailing P/E ratio is a relative valuation multiple based on the last 12 months of actual earnings, and it is computed by dividing the current stock price by the TTM earnings per share (EPS).

Current Share Price / TTM EPS = Trailing P/E Ratio
In contrast to the trailing P/E, the forward P/E calculates the price-to-earnings ratio using expected future earnings.

Is EPS and TTM EPS same?

No, Earning per Share and TTM Earning Per Share not the same.

Difference between EPS and TTM EPS ?

In EPS there is no time frame. Earning per Share can be calculated for Quarter, Year but in TTM Earning Per Share there is time frame i.e. 12 months.

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