Looking solely at a company’s past profits is not enough before purchasing its shares. It is also essential to understand how the company has performed over the last few months. This is where TTM comes in. It helps you gain a better understanding of a company’s earnings, TTM EPS, and P/E ratio. Let’s explore what TTM is and how you can view it on Screener.
What Is TTM in Stock Market?
Suppose you are considering buying shares in a company. You might look at its annual report, but by then, the company’s latest quarterly results may have already been released. In such a case, the old data will not provide an accurate picture of its current earnings. This is where TTM comes in.
TTM full form in share market is “Trailing Twelve Months.” It looks at a company’s earnings over the preceding 12 consecutive months. For example, if results are available up to June 2026, the TTM period would include the four quarters from July 2025 to June 2026.
TTM in Share Market
In TTM, “trailing” refers to looking back at a past period. The timeframe does not begin on a fixed calendar date; rather, it is determined based on the company’s most recently available financial results.
In India, the financial year runs from April to March, but the TTM period is not restricted to this cycle. For instance, when the results for the June quarter are released, the TTM data might cover the period from July to June.
How Does TTM Work in the Indian Stock Market?
The easiest way to understand TTM is to look at a company’s results from the last four quarters combined. In India, companies release their quarterly financial results on the NSE and BSE. Using these results, investors can estimate a company’s earnings over the most recent 12-month period.
Step 1: Look at the company’s latest quarterly results.
First, examine the company’s most recently announced results. For instance, suppose the company has released its results up to the quarter ending June 2026.
Step 2: Gather data for the last four quarters.
If you want to calculate the TTM for Net Profit, you need to take the net profit figures from the last four quarters.
| Quarter | Net Profit |
|---|---|
| September 2025 | ₹80 crore |
| December 2025 | ₹100 crore |
| March 2026 | ₹120 crore |
| June 2026 | ₹140 crore |
Step 3: Add the figures for all four quarters.
₹80 crore + ₹100 crore + ₹120 crore + ₹140 crore = ₹440 crore
In this example, the company’s TTM Net Profit would be ₹440 crore.
Step 4: Update the TTM when new results are released.
Suppose that upon the release of the September 2026 results, the company’s net profit is ₹150 crore. You would then remove the ₹80 crore from September 2025 and include the ₹150 crore from September 2026.
New TTM Net Profit = ₹100 crore + ₹120 crore + ₹140 crore + ₹150 crore = ₹510 crore.
In this way, the TTM period advances with each new quarter. Keep in mind that the TTM calculation should use comparable figures for the relevant metric, and the calculation must be based on the company’s published results.
How to Calculate TTM in Stock Market
When you’re trying to figure out TTM (Trailing Twelve Months), the biggest thing is simply getting your numbers from the correct timeline. If you want to check annual sales or profit against recent results, you can pick either of the two ways mentioned here.
Method 1: Using Quarterly Results
If a company has released all four quarters, calculating TTM is easy just sum up the data from every quarter.
Formula: TTM = Q1 + Q2 + Q3 + Q4
This method is useful for figures such as Sales and Net Profit. Data for all quarters must be based on the same accounting basis.
Method 2: Using Annual and YTD Numbers
If you’ve got the full figures for last financial year along with the Year-to-Date (YTD) data for this one, you can run this simple formula:
TTM = Previous FY + Current YTD – Previous YTD
| Particular | Sales |
|---|---|
| Previous financial year | ₹900 crore |
| Current year YTD | ₹520 crore |
| Previous year matching YTD | ₹450 crore |
| TTM Sales | ₹970 crore |
Calculation: ₹900 + ₹520 − ₹450 = ₹970 crore.
In this way, the sales for the first six months of the previous financial year are removed, and the sales for the first six months of the current financial year are included.
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What Is TTM EPS? Meaning, Formula and Example
TTM EPS Meaning
When a company’s profit is growing, it is also important to know how much profit is being generated per share. This is where EPS or Earnings Per Share comes into play. When this is calculated based on the earnings from the previous 12 months, it is referred to as TTM EPS.
TTM EPS Formula
TTM EPS generally refers to the earnings per share over the trailing 12 months. Its calculation takes into account the company’s earnings and the weighted average number of shares for the corresponding period.
TTM EPS Example
Suppose a company’s profit for the last 12 months is ₹120 crore, and its weighted average number of shares is 10 crore.
| Particular | Value |
|---|---|
| Profit for the last 12 months | ₹120 crore |
| Weighted average shares | 100 million |
| TTM EPS | ₹12 |
In this example, the TTM EPS is ₹12. This means that over the past 12 months, the company has recorded earnings of ₹12 per share. This does not represent the dividend received by the shareholder.
How Is TTM Used to Calculate the P/E Ratio?
The fact that a share is priced at ₹500 does not, by itself, indicate whether it is expensive or cheap. To determine this, one must look at the price at which the company is trading relative to its earnings. The TTM P/E ratio is useful for this comparison. The NSE also defines the P/E ratio as the ratio of a share’s price to its earnings per share.
Example of TTM P/E Ratio
Suppose a company’s share is trading at ₹500 and its TTM EPS is ₹25.
P/E Ratio = Share Price / TTM EPS
₹500/₹25= 20
TTM vs Annual Results vs Quarterly Results
| Comparison | TTM | Annual Results | Quarterly Results |
|---|---|---|---|
| Meaning | Financial data for the last 12 consecutive months | Data for the entire financial year | Data for one quarter that is, approximately 3 months. |
| Reporting period | The four most recent available quarters | April to March, the normal financial year in India | Such as April–June or July–September |
| Main purpose | Understanding the company’s recent financial performance | Reviewing full-year earnings and performance | Understanding recent changes and business performance |
| Update | It could change when the new quarterly results are released. | It is updated when new annual results are released. | Updated with the results of each new quarter |
| Example | July 2025–June 2026 | April 2025–March 2026 | April–June 2026 |
| Limitation | A significant change occurring in a particular quarter might need to be investigated separately. | This does not include information on new quarterly results if they are released after the financial year. | In a seasonal business, a single quarter cannot provide an accurate picture of overall performance. |
Advantages and Limitations of TTM
When looking at TTM (Trailing Twelve Months), it is important to understand one thing: while it helps in assessing a company’s earnings over the past 12 months, this figure alone is not enough to decide whether or not to buy the company’s shares.
Advantages of TTM
- Helps in understanding recent financial performance: If a company’s profit was strong last year but has since declined, simply looking at the annual report might not reveal this shift. TTM (Trailing Twelve Months) data incorporates the most recent results.
- Makes stock valuation a lot simpler: Whether a share costs ₹100 or ₹1,000, that price alone doesn’t show its true value. By checking the share price alongside TTM EPS (Earnings Per Share), you can easily see how the stock is performing against its actual earnings.
- Avoids over-reliance on a single quarter: Sales can fluctuate significantly from one quarter to another. Looking at data for a full 12-month period helps investors avoid placing undue emphasis on the performance of any single quarter.
- Enables comparison of company performance: By comparing the TTM sales and profits of two companies within the same sector, one can determine which business is generating higher earnings. However, factors such as the size of the companies and their respective accounting bases should also be considered.
- Highlights shifts in earnings: If TTM profit is rising, it becomes easy to identify an improvement in the company’s earnings. One can then examine quarterly results to understand the specific reasons behind this growth.
Limitations of TTM
- Past earnings do not guarantee future performance: TTM data reflects the last 12 months. If a company’s business is currently in decline, strong historical results will not provide an accurate picture of its future prospects.
- Recent downturns may be masked: For instance, if a company earned a high profit in the early months of the year but saw its earnings drop over the last two quarters, the overall TTM profit might still appear robust.
- One-time gains can distort results: If a company records a large profit from the sale of an asset, its TTM profit will increase. This does not necessarily mean that the company’s core, day-to-day business operations have improved.
- Comparisons are not uniform across all sectors: Banks, IT companies, and FMCG firms have different business models and ways of generating earnings. Therefore, rather than directly comparing TTM (Trailing Twelve Months) figures across different industries, it is more useful to compare companies within the same sector.
Read Also: Tracking Stock: Meaning, Examples, Pros & Cons
Conclusion
A company’s TTM (Trailing Twelve Months) performance being strong can be a positive sign, but that alone is not enough to justify buying its shares. It is also essential to understand the sources of the company’s earnings and the changes taking place within its business. Ultimately, investment decisions should be based on an understanding of the data, rather than just looking at the figures themselves.
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Frequently Asked Questions (FAQs)
What Is the Full Form of TTM in the Stock Market?
The full form of TTM is “Trailing Twelve Months.” It represents a company’s financial data for the preceding 12 consecutive months.
How Is TTM Calculated?
TTM is generally calculated by adding the relevant financial figures from the last four quarters.
What Does TTM EPS Mean?
TTM EPS indicates how much a company has earned per share over the last 12 months.
What Is TTM in Screener?
On Screener.in, TTM figures help in understanding a company’s recent sales, profit, and valuation.
Is TTM Better Than Annual Results?
TTM helps in understanding recent performance, whereas annual results provide information for the entire financial year. Both are useful.
