How do we forecast companies without production/sales data?
Hey guys, I hope I'm posting this in the correct forum. I am a fresh analyst in a developing market who's been tasked to model a chemicals and pharmaceuticals company. The issue I have with it is that the company in question has not given any production or sales data for their products nor does the industry it operates in provide any such data; in fact they have only given total production data for their pharma business for only the past 2 years. What would you recommend for the three financial statements for such a company? How do I make a detailed financial model for such a company? Should I use DCF or some other technique?
The type of model depends on the information you want.
As for the limited historical info, there's not much you can do about it. You have to make assumptions based on what you have. In my line of business, I deal with private companies 75% of the time. We will make a "back of the napkin" model based on broad assumptions and through conversations with the company, obtaining more financial statements, and our own risk appetite, we'll adjust the model accordingly. If you're doing this as an academic exercise, the most important thing is to have reasons for your assumptions.
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