Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I like to take the last quarter or two and multiply the quarterly earnings by 4 and divide it into the market cap.

I prefer to take the last 4 quarters, or trailing twelve months (TTM) for earnings. This eliminates the variation among quarters that many companies like UPS see with seasonal surges like Christmas (many retailers will make more $$ in the Christmas quarter than in the other 3 combined).
Plus, using the TTM if you are halfway through the FY gives you an indication of where the EPS trend is leaning.

Print the post  


What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.