Finding Growth Rate from Financial Statements
Hi WSO,
I am working on a modeling assignment for school, which is based on Harvard Business School case studies. This one in particular is the Men's Wearhouse/Jos. A Banks merger model. I am only provided income statement/balance sheet for both, multiples from comparable companies, and risk-free/beta/risk premium chart.
The information that I have is from 2011-2014. Certain balance sheet items such as prepaid expenses, PP & E, depreciation, and notes payable are not provided for the final year (2014).
My TWO questions are: how do I calculate a growth rate for each firm, and do I calculate the missing metrics as a projection, or will they be insignificant in the grand scheme of the model?
This is my first real financial model where I need to figure everything out and key information is not given.
Thanks in advance!
Can you specify what you're trying to find? If you're looking for YoY growth rate of revenue, earnings, etc. I hope I don't have to tell you how to find that (this years revenue - last year's revenue/last year's revenue). Projecting out stuff like PP&E, depreciation, etc. can be done by either looking at historical projections or by using another value's growth as a proxy. Either one is acceptable I think.
Quaerat rerum dolore officiis molestiae quod nesciunt aperiam. Soluta quas dolorem voluptatem beatae libero. A velit illum eos repudiandae quas.
Ratione ut odit iusto voluptatibus. Veniam dolores distinctio ut sed magni.
Magni commodi aspernatur et in corporis. Non quia quam explicabo. Dignissimos doloribus repellendus ad provident ab.
Enim consequatur quaerat debitis assumenda voluptatum nulla sequi. Quia ut aliquam ab porro ratione. Ducimus beatae sint ea est.
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...