# What is TTM EPS?

By Research Desk

TTM stands for trailing twelve months.

TTM EPS means EPS for the last 12 months of the company. This is different from the full year EPS reported by the company in the previous audited financial year.

Most Indian companies follow financial year from 1st April to 31st March. Taking an example of Company A which the reported following EPS for different periods:

 Period EPS (in Rs.) Quarter ended 31st March 2010 10 Year ended 31st March 2010 38 Quarter ended 30th June 2010 11 Quarter ended 30th September 2010 12 Quarter ended 31st December 2010 12

For FY10, the company reported full year EPS of Rs. 38.

As on 31st December 2010, its TTM EPS is sum of EPS of the last 4 quarters beginning with the March 2010 quarter.

Thus, TTM EPS for company A = EPS for March 2010 quarter + EPS for June 2010 quarter + EPS for September 2010 quarter + EPS for December 2010 quarter

= 10 + 11 + 12 + 12

= Rs. 45

TTM data is important to calculate the financial ‘run-rate’ of the company, as it takes into account the most recent events. Thus, we can have TTM revenue, TTM PAT and so on.