I've been trying to forecast revenue for consumer retail businesses, such as Dollar General and Five Below, but was not sure how to do it accurately. Is below equation acceptable way to forecast revenue?
Revenue in Year 0 * (1 + SSS) * (1 + square footage growth rate) = Revenue in Year 1
For example, if Revenue in Year 0 = $100, SSS = 3%, square footage growth = 10%, then the revenue in Year 1 = $100 (1.03)(1.10) = $113.30
- Most of the equity research reports that I've read about these companies emphasize a lot about changes in SSS, but kind of skim over square footage growth. Is there a better way to forecast revenue so that it's in-line with what these analysts are projecting?
basiccalculator, sorry about the lack of response. Maybe one of these topics will help:
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If those topics were completely useless, don't blame me, blame my programmers...
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