Trailing sales

Trailing sales

Past sales. Often used in the valuation of companies that have negative cash flows or earnings. The company is said to be valued at some multiple of past sales - usually, the last 12 months sales.

Trailing Sales

A company's revenue from sales over a period of time in the past. Often, a company will use trailing sales over the past 12 months to help forecast its expected sales over the coming 12 months. Trailing sales are useful because they can be known with certainty; however, their predictive value is often limited because of forces outside the company's control.
References in periodicals archive ?
Up to $15 million payable in cash or HeartWare common stock when the 12-month trailing sales of the SYNERGY Surgical System reach $30 million;
iPhone sales The suppliers' declines were limited by earlier reports the iPhone 5 was trailing sales targets and that Apple was cutting production, said Keita Wakabayashi, an analyst at Mito Securities in Tokyo.
Despite the fact 13million people are thought to have tuned in to see him, his comeback single Bodies' is still trailing sales of Alexandra Burke's track by two to one.
But Wolfson last year told The Register-Guard he wanted to sell the firm for the equivalent of 12 months trailing sales.
12 Month Trailing Sales Growth (Current / 1 Quarter Ago) greater than or equal to their relevant Industry average.
As part of its Valuation and Investment Opinion, Harbinger states: "Given that acquisitions in the financial portal and the online community industries can routinely range from five times to eight times trailing sales, this yields a potential take-over value three years from now of $150mln - $240mln, several times the company's current market capitalization.
Four Seasons Hotels is currently trading at unwarranted above-peers price level of 6 times trailing sales and forty-four times Standard & Poor's 2002 EPS of C$1.
The first quarter realized margin continued to be affected by the sharp increase in crude oil prices and trailing sales prices of residual products.
Proforma Trailing sales of the combined companies for the fiscal year ending June 30, 2007 came to $1,257,576, compared to PFSD's reported $596,774 in sales with a gross profit of $693,058.
The fourth quarter realized margin was affected by the sharp increase in crude oil prices and trailing sales prices of our residual products.
5 million over the December 31, 1994 figure, the number of days sales in inventory decreased slightly as compared to trailing sales and has gone down significantly as compared to expected forward-looking sales.
5 percent and 12 month trailing sales were $5,011,511 vs.