Finishing Operating Model with Only 3 Q's of Financial Statements
I'm working on an operating model (that will be used to link to a DCF) for a company that only has 3 quarters worth of financials for this year, and whose 10K comes out around March. I have 3 FY of Actuals for the company but was wondering if there is a best practice for taking the 3 quarters' worth of performance during this year into consideration for the model (without converting the entire model to be based on quarterly performance)? Let me know what knowledge you have to lay down!
I would make a LTM based on Q4, Q1, Q2, Q3 for comparison purposes and then forecast a 2019 LE with similar assumptions.
What is LE? Long term expectations?
Latest estimate for current year.
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