Estimating COGS/SG&A from EBITDA %
Was only given EBITDA % for a 3 statement + DCF model. How to estimate COGS and SG&A % given this? What is a reasonable assumption for this for a tech company?
Was only given EBITDA % for a 3 statement + DCF model. How to estimate COGS and SG&A % given this? What is a reasonable assumption for this for a tech company?
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Can you list everything that is given?
if you need to estimate bottomline numbers, you could theoretically start directly at EBITDA after all opex. But need some more info and the actual question, to figure out what to do based on what is given.
It's a model template given to me to fill out, but I do already have Interest, Tax, and Depreciation. However, on the prefilled model, it has Revenue, COGS, and Gross Margin listed on the blank Income Statement, along with then SG&A, EBITDA, and Net Income. Do you think I could just delete the COGS, Gross Margin, and SG&A cells and just find Net Income with EBITDA? I'm only concerned since COGS & SG&A are listed on the model template. I can also email and ask though
I just saw your comment - probably posted instead of replying on mine.
if you don’t need cogs and sg&a separately, I would just put it as total operating expense if only EBITDA margin is given.
so (1 - EBITDA margin) * Revenue would be the OpEx number.
if you don’t need gross profit and margins, no need to try to estimate it unless they specify that you have to or some point in the model, you specifically need to for some reason.
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