3- Prospective Analysis

3- Prospective Analysis - Prospective Analysis: FORECASTING...

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1 Why do we need forecasting? Managers Analysts Bankers and Debt market participants Prospective Analysis Forecasting Valuation Prospective Analysis: Prospective Analysis: FORECASTING FORECASTING
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2 Relation of Forecasting to Relation of Forecasting to Other Analyses Other Analyses Strategy Analysis: Nordstrom/TJX Accounting Analysis Overstated/Understated? Implication for the future? Financial Analysis Source of superior performance Is it sustainable?. ..
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3 Comprehensive Approach Forecast of earnings, balance sheet and cash flow as well Forecasting begins with a forecast of sales The sales forecast forms the basis of predicting the future balance sheet, income statement, and statement of cash flows More than one way to estimate revenue (by product, by segment, by geography, by market conditions) FORECASTING THE FUTURE FORECASTING THE FUTURE
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4 Points of Departure Points of Departure Initial Benchmark Performance of last year Performance of last year adjusted for trend Average performance over several prior years
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3- Prospective Analysis - Prospective Analysis: FORECASTING...

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