What is TTM EPS and how is it calculated?

TTM EPS = Trailing Twelve Month Earnings Per Share

TTM EPS is a trailing value that adds the actual EPS values of a companies last four quarters.

EPS for most companies will fluctuate from quarter to quarter due to the seasonality of their respective businesses. Calculating the Trailing Twelve Month value smooths out these ebbs and flows to make it easier to see the companies ability to grow their earnings over the long term.

EPSG Heavyweights seeks to find companies with smooth upward trending TTM EPS curves like the example below. Notice the actual quarterly values in blue appear to be choppy but the purple TTM EPS line is nice and smooth over the past 20+ years.

Companies with these predictable earnings growth trends should be worth more in the future if they can continue to execute on their proven business models.