How to Incorporate 10-Q Info Into the Model
Like the title says, how should you incorporate 10-Q info into a financial model? Say the company is in the middle of FY 2020, should you show quarterly info for past years (i.e. 2019, 2018 & 2017) along with full year numbers or for past years should you just use full year numbers from the 10-k. If you are in the middle of the company's FY and they have released 2 10-Qs for 2020 how would you incorporate this info into the model (if at all)? If you do, how would you use the quarterly info to help you project out the remainder of 2020 for the model? Thanks!
bump
I usually do a YTD stub and extrapolate the rest of the current fiscal year from that, before going into projections for the following years. This assumes no seasonality that could skew things.
You can also just do a full on quarterly model.
Agree with BobMerkin. You can either do YTD, and extrapolate or do YTG (Year-To-Go) if you have budgets for the rest of the year.
Most deals are done in between financial years so you will often times have a 12-month trailing revenue/EBITDA or something of the sort to show the trading figures and how the company is performing now.
Thank you! Does anybody else have additional ways of handling this?
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