Forecasting Guidelines

Revenue:

Sales

Sales return

Service Provide

Product A

Product B

Product C

Historical Performance and Current Industry Look

Depriciation: Remains same for the years until specified.

If you are making any assumption for the forecast, you need to make sure that
backtesting of that assumption is Equal to the historic conditions

2014 2015 2016 2017

100

IF you are forecasting assets, there are generally two types or categories of
assets

Operating asset has some relationship with the sales – forecast it along with
the ratio of sales

Investment Assets – Should be done in accordance with some growth year.

Valuation

Discounted Cash Flow Valuation:

1. WACC
2. The Free Cash Flows
3. The Terminal Value
4. The Enterprise Value
5. The Equity Value
Elements of discounted cash flows.

WACC: Done

Free Cash Flow: