Modelling months or years
In IBD when working on an M&A transaction and building out an operating model and DCF are you meant to do it monthly, quarterly or yearly?
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I like to go for daily for maximum precision
Fuck it why not hourly?
Bump
It just depends. Is this a quick model? Annual. Are you in October or November and need to do a 9 month LTM for a public company? Just grab the 9 mo. period (if they have one from the 10-Q. Or compute it by aggregating quarters if they don't...)
Is it a more complex model with projections for a public, but not super complex... quarterly.
Is it a more complex PE model where you are getting monthly flash reports from the company (typically private co.). Monthly.
Obviously the answer is more complex than that, but it really depends on how you are trying to do your analysis? Are you baking in YoY growth rates for quarterlies? Then do quarters... etc.
TL;DR: Typically you are fine doing annuals for anything quick
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