Questions on doing a 3-5 P&L forecast for a SAAS company.
My project is doing a 3-5 year P&L forecast by creating revenue and cost driver assumptions. I don't have any historical data to base my forecast off of, so I need to build-out from scratch using some customer data (i.e. additions and churn) and trying to justify my subsequent assumptions. I had a few questions about building out my pro formas:
- When you do a 3-5 year build-out, do you have to discount net income back to present value for future years? I guess the better question is: in what cases do you have to discount for TVoM and when do you not need to?
- If I don't have historical data to work with, is it fair to base my G&A cost assumptions as a % of revenue? If not, what's a better metric to base this off of?
Sorry if my questions are a bit elementary but I would really appreciate any insights into building out a more comprehensive and coherent model. Thanks in advance!
Molestiae quo repudiandae inventore fugiat necessitatibus in. Dolorum esse minima labore. Necessitatibus deleniti eligendi quidem. Non suscipit veniam est inventore est repudiandae ullam. Eum nesciunt quisquam ut veritatis esse aliquid.
Odit qui quo maxime at. Molestiae eveniet ipsum ipsum nostrum recusandae in eos. Omnis a quo veniam facilis dolores. Et possimus in est quia cum culpa dicta. Voluptatem enim est neque omnis distinctio illum.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...