Ways in checking your forecasting
Say I have forecasted the income statement and balance sheet
but how do I know if my forecasts are reasonable and more or less accurate?
are there ways to check it?
Say I have forecasted the income statement and balance sheet
but how do I know if my forecasts are reasonable and more or less accurate?
are there ways to check it?
+81 | Q&A - Buyside Equity Research Analyst/PM | 29 | 1w | |
+32 | How the heck do you learn all of this stuff? | 10 | 4d | |
+28 | My experience on the sell side | 20 | 3w | |
+24 | Clues in Financial Reporting Analysis | 7 | 5d | |
+17 | Am i fairly compensated? | 9 | 6d | |
+14 | Data Science to PM | 8 | 1w | |
+14 | Heard they don’t model at Oppenheimer | 10 | 2w | |
Equity Research at Bank vs IG, High Yield & Leveraged Loans Research at Asset Manager | 4 | 5d | ||
+12 | ER - Remote Jobs? | 8 | 1w | |
+11 | Who uses sell-side Strategists? Are they valuable? | 4 | 1w |
Career Resources
I am going to guess most will suggest Sensitivity Analysis
You could browse over some analyst estimates and see how your numbers line up.
when you say forecasted income statement and balance sheet are you talking about using a mathematical formula to predict the expected income of a company. Im not an accountant major and I use forecasting for stock analysis but what your talking about is intriguing
Use ratios like ROC/Days Receivable/Days Payable etc to make sure your assumptions aren't way off. You can try to check these with peers and if you see something weird like 100 days outstanding vs industry of 50 days then you'll know you have something off.
Facere aut vitae occaecati eos autem sit molestiae. Et repellat et ipsa libero illum. Quisquam ut ut laudantium quis.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...