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Force clarity on whether a quoted multiple uses trailing or forward revenue.

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NTM vs LTM Revenue in Valuation Conversations

Same multiple applied to different revenue periods produces very different prices.

DimensionLTM / TTMNTM (forward)ARR (SaaS)
What it measuresLast 12 months recognized / bookedNext 12 months expectedAnnualized recurring run-rate
Negotiation riskLower if growing fastOptimistic plans inflate valueMust define logo vs contracted
Best paired withProof of deliveryPipeline quality + visibilityNRR / gross margin

Source: Standard growth-investing revenue period conventionsEducational. NTM means next twelve months; LTM/TTM means last twelve months. Always ask which period and which adjustments.

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Audience: founder, investor · Category: fundraising

Tags: ntm, ltm, arr, valuation