Technical Question Help - 3 Statement model
Hi All,
Incoming IB analyst. I’m in my final year of studies and for my class final I have been asked to make a full 3 forma financial projection and then do a DCF valuation. I’ve gone through “simple” examples in class and on YouTube videos so I have a good understanding, but now I have to project one for a real company.
There are a bunch of line items on the balance sheet (highlighted in yellow), that I have no idea how to project. Do I just keep the accounts the same or project them with revenue or Cogs? Or do I need to download the detailed excel financial statements and spend hours digging through each account to see how it is projected
Thanks for the assistance. Really wanting to make a complex and detailed model that gives me exposure before I go into banking. Highlighted items are ones I have no idea how to project:
% of revenue: prepaid expenses, accrued expenses, other non-current liabilities
structured payables: take historical DOH and use DOH across projected years which will allow you to calculate payables based on COGS.
investments in unconsolidated affiliates: not sure here, could leave flat but maybe others can add detail.
other intangibles: you can decrease the projected years if you are given detail on amortization, otherwise you can assume an assumption.
Deferred tax liabilities: can assume a % of income taxes for simplicity, but the google the topic if you want a granular projection.
Thank you very much
Officia aut animi voluptatem ipsa facilis consequuntur. Tempora est est maxime qui sapiente et. Inventore non dignissimos qui et ullam dignissimos praesentium. Est et sit deleniti dolores dolorum adipisci. Sint optio ex et officia.
Expedita qui debitis est consequatur. Sed quia accusantium eveniet qui voluptatem. Iste tempora amet sit dolores ratione. Incidunt voluptatem necessitatibus sit dignissimos quod doloribus. Et laudantium nisi magnam aut fuga.
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...