How do you calculate future revenue?
I'm pretty new at all of this so please bear with me.
So suppose you have financial data for a company and you want to project future revenue so that you can do an analysis.
What do you do?
Do you find the Ebitda multple and multiply that by the this year's revenue? Or do you take the average growth rate for the past 5 years and use that as the growth rate?
I've heard different answers.
Thanks
there is no one way to calculate future revenue...its a completely subjective estimate and you can use whatever reasonable metrics you would like as long as you can back up your reasoning
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