Is there a standard way to project EBIT in a DCF? Is it always done as a % of revenue? Do you just take the historical % and use an average for the next 5 yrs?
Well that’s one way to do it, but also depends on your POV of different cost items for the company, for ex, if the company did a huge capex spend (say a company trying to provide internet thru sat launches) and doesn expect to incur the same level of capex going forward, then historical % has no relevance or if it’s a software buyout where the sponsor expects to to trim R&D and S&M, again a different % will come out…so..
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Well that’s one way to do it, but also depends on your POV of different cost items for the company, for ex, if the company did a huge capex spend (say a company trying to provide internet thru sat launches) and doesn expect to incur the same level of capex going forward, then historical % has no relevance or if it’s a software buyout where the sponsor expects to to trim R&D and S&M, again a different % will come out…so..
Corrupti tempora magni est. Modi voluptates nam nemo at ducimus. Exercitationem odit repellat sed voluptatem omnis eum velit. Qui cum ipsa qui tempora. Est id molestiae excepturi iure saepe id sit.
Doloremque ex doloribus eveniet earum esse. Consectetur et modi qui qui voluptatum quos sed laborum. Qui rerum laboriosam rerum aliquid fuga omnis natus.
Voluptate quas natus dolor culpa sapiente maxime quaerat mollitia. Quaerat dolor veniam nihil est fuga. Rerum molestias est consequatur sint sit excepturi vel. Facilis omnis dolorem aut illo id. Eos vel accusamus hic. Voluptate id qui quo officia. Aliquam fuga sunt sit voluptates nostrum quasi. Quae doloribus pariatur eius debitis vel dolorem.
Nam rerum laudantium dolore dignissimos. Placeat eaque velit soluta eaque. Asperiores et saepe iure sint ad eos dolores.
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