What Is TTM in Stock Market? Meaning & Formula

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.

Read Also: What Are Control Stocks and How It Works?

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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