Definition - What does NTM EBITDA mean?
Divestopedia explains NTM EBITDA
The buyer will estimate the multiple it is paying on NTM EBITDA to assess the reasonability of the purchase price. For example, if the buyer estimates the enterprise value (EV) at $50 million for a target that is doing $5M of TTM EBITDA, this would result in a multiple of 10X. This multiple may be unreasonable in the industry that the target operates in. However, the target may have just introduced a high margin new product that is projected to double EBITDA in the next twelve months. This may justify the buyer's purchase price as it would represent 5X NTM EBITDA, which may be more in line with comparables.