Building a DCF Model1.Gather and enter the historical numbers (from the Segments tab)2.Use the Growth Rate (given) to project the revenue growth from 2016-20203.Pull COGS from the income statement4.Find future COGS by multiplying total revenue by the ‘COGS % of Revenue’5.Predict the SG&A (selling, general administrative expenses) by pulling the historical from the income statement, then multiplying Total Revenue * SG&A as a % of Revenue6.Pull the R&D (research and development costs) from the income statement, then predictthe future values by multiplying Total Revenue * R&D as % of Revenue7.Fill in the EBITDA NOT(!) from the income statement, but subtract Margin – RD - SGA, then predict by Subtracting SG&A and R&D from Gross Margin8.Fill in the historical D&A from the statement of cash flows, then predict by multiplying
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- Spring '08