LTM build
Last fiscal year, plus the stub, less the prior stub.
By Surojit Chakraverti, founder of L3VLUP and an investor running a long-short healthcare and technology equities strategy.
On this subject: ltm build.Updated 30 September 2026
What it does
The trailing period every trading multiple is quoted on. The last audited year is rolled forward by the current year to date and rolled back by the same months of the prior year, so the result is the most recent twelve months the company has reported. The stub length is carried beside it so the arithmetic can be checked against the quarterly filings.
Where it lives
The same schedule in each model that carries it, with the rows to open. Open a model in the browser, go to the sheet, and click the lines.
- Assumptions, rows 31–37: Months reported year to date, Revenue, year to date, Revenue, same period of prior year, EBITDA, year to date…
- LTM, rows 6–9: Year-to-date months (stub), Revenue, LTM, EBITDA, LTM, Net income, LTM
- LTM, rows 12–15: Revenue growth, year to date vs prior-year period, EBITDA margin, LTM, LTM revenue growth vs FY0A, Check: prior-year stub revenue in excess of FY0A revenue
What a reviewer looks for
- Adding the current stub without subtracting the prior one.
- A stub from the wrong number of months on one side of the subtraction.
- Quoting an LTM multiple on a price that has moved since the stub was reported without saying so.
Learn it, then build it
Understand · Primer
Comparable Company Valuation
Build · Lab · ~15 min
Comps Explorer
Curate a peer set you can defend name by name, calendarise it to one year end, and say what the median does and does not tell you.
Read · Guide · 7 min
Comparable Companies (Comps) Interview Questions
Vocabulary: LTM (Last Twelve Months).