What Is Cost of Goods Sold (COGS)?

Cost of Goods Sold (or COGS) is the total cost of sales for the entire output of a company. It is the sum of the cost of each good sold. This is another crucially important financial figure for analysing a company. COGS includes materials, labour, distribution and generally everything incorporated with every individual unit of output. For projection purposes, COGS is either taken as a percentage of revenue or as an actual calculation from unit sales and unit costs. In future projections, Prepaid Expenses, Accounts Payable, Inventory and Accrued Expenses can all be assumed to be a percentage of COGS.

To learn more about this concept and become a master at valuation modeling, you should check out our Valuation Modeling Course. Learn more here.

Module 1: Introduction

Module 2: Valuation: The Big Picture

Module 3: Enterprise Value & Equity Value Practice

Module 4: Trading Comparables Introduction

Module 5: Trading Comps: The Setup

Module 6: Trading Comps: Spreading Nike (NKE)

Module 7: Trading Comps: Spreading Adidas (ADS.DE)

Module 8: Trading Comps: Spreading Lululemon (LULU)

Module 9: Trading Comps: Spreading Under Armour (UA)

Module 10: Trading Comps: Benchmarking and Outputs

Module 11: Precedent Transactions: Introduction

Module 12: Precedents: The Setup

Module 13: Spreading Tiffany & LVMH

Module 14: Spreading FitBit & Google

Module 15: Spreading Reebok & Adidas

Module 16: Spreading Jimmy Choo & Michael Kors

Module 17: Spreading Dickies & VF

Module 18: Valuation Wrap-Up

Module 19: Bonus: Non-GAAP Practice

Learn More Here

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