What is TTM in Stocks?

TTM, or Trailing Twelve Months, is a method of measuring a company's financial performance over the last 12 consecutive months ending on the most recent reporting date. It gives investors a current and rolling view of metrics such as revenue, earnings per share (EPS), and the price-to-earnings (P/E) ratio.

• TTM covers the last 12 months of actual reported data, not a fixed financial year
• Used to calculate key metrics: TTM EPS, TTM P/E ratio, TTM revenue, and TTM EBITDA
• More current than annual report data, which can be 6 to 12 months old by the time investors read it
• TTM is backward-looking and does not predict future performance
• Available on most stock screeners, broker platforms, and financial data sites for listed Indian companies
• SEBI-regulated companies listed on BSE and NSE report quarterly results, which form the base for TTM calculations

TTM is calculated by adding the most recent four quarters of reported financial data. The formula is straightforward.

TTM formula:
TTM = (Most recent full year annual figure) + (Most recent quarter) - (Same quarter from the previous year)

Example using net profit:

Suppose a company reports the following net profit figures:

TTM net profit = ₹400 crore + ₹110 crore - ₹90 crore = ₹420 crore

This gives you the net profit for the 12-month period ending June 2024, without waiting for the full FY2025 annual report.

Step-by-step process:

1. Find the company's most recent full-year annual report figure for the metric you want (revenue, EPS, EBITDA, etc.)
2. Add the value from the most recently completed quarter
3. Subtract the value from the same quarter of the previous year

4. The result is the TTM figure for that metric

   
   

You can repeat this for any financial metric: revenue, operating profit, EPS, or free cash flow.

TTM is applied across several financial metrics that investors use daily to evaluate stocks.

TTM EPS (Earnings Per Share)
TTM EPS is the total earnings of a company over the last 12 months divided by the total number of outstanding shares. It reflects how much profit each share has generated in the recent period.

TTM EPS = TTM Net Profit / Total shares outstanding

TTM P/E ratio (Price-to-Earnings)
The TTM P/E ratio is the most widely used valuation metric in equity research. It compares the current stock price to the TTM EPS.

TTM P/E = Current market price / TTM EPS. A TTM P/E of 20 means investors are paying ₹20 for every ₹1 of earnings generated in the last 12 months. This is used to compare valuations across companies in the same sector.

TTM revenue
TTM revenue is the total sales a company generated in the last 12 months. It shows whether a business is growing, stable, or declining without relying on year-old annual data.

TTM EBITDA
TTM EBITDA (Earnings Before Interest, Tax, Depreciation, and Amortisation) measures operating profitability over the trailing period. It is used in valuation ratios such as EV/EBITDA (Enterprise Value to EBITDA).

TTM free cash flow
TTM free cash flow is the cash a company generated after accounting for capital expenditure over the last 12 months. It indicates whether the business can fund its own growth, pay dividends, or reduce debt without external financing.

TTM uses actual reported data. Forward-looking metrics use analyst estimates of future performance. Both serve different purposes in stock analysis.

When to use TTM: Use TTM when you want to value a company based on what it has actually delivered, not what analysts expect. It is more reliable for stable, mature businesses.

When to use forward metrics: Use forward P/E or forward EPS when evaluating high-growth companies where current earnings understate future potential, such as early-stage businesses investing heavily in expansion.

Neither method is superior on its own. Experienced investors use both together to get a complete picture.

TTM offers four practical advantages for investors evaluating stocks.

1. More current than annual data
Annual reports in India are typically published months after the financial year ends. TTM data updates every quarter, so investors always work with the most recent 12 months of performance.

2. Removes seasonal distortions
Many businesses are seasonal. A retail company may earn 40% of its annual revenue in the October-to-December festive quarter. Using a single quarter's data inflates or deflates the picture. TTM smooths out these seasonal swings by covering a full year of operations.

3. Enables fair comparison across companies
Not all companies follow the same financial year. TTM standardises the comparison window so you can place two companies side by side on the same 12-month basis regardless of their reporting cycles.

4. Widely available and easy to apply
TTM figures are displayed on most Indian stock screeners and brokerage research platforms. Investors do not need to calculate TTM manually for every metric; the data is readily accessible for BSE and NSE listed companies.

TTM and YTD (Year to Date) are both time-based financial measures but they cover different periods and serve different purposes.

Example: On 30 June 2025, TTM covers July 2024 to June 2025. YTD (for an April-to-March Indian financial year) covers only April 2025 to June 2025, which is just one quarter.

YTD is useful for tracking how a stock or portfolio has performed since the start of the year. TTM is the right measure when you need a full 12-month performance picture for valuation or comparison purposes.

TTM, or Trailing Twelve Months, gives investors a rolling, current view of a company's financial performance without waiting for an annual report. It forms the base of widely used valuation metrics such as TTM P/E, TTM EPS, and TTM EBITDA, and helps compare companies across different financial year cycles fairly.

TTM works best for stable, established businesses with consistent earnings. For early-stage companies, turnaround stories, or businesses with large one-time items, TTM figures need to be read carefully alongside forward-looking estimates and sector context.