projecting the future


  • pro formats 
  • formal way/form to propose new projects 
  • apply business expertise, financial expertise, and soft intuition ( art and science) 
  • use of key and other assumptions 
  • key assumptions are generally more sensitive to change since results when they change 
  • elements include financial statements, comporable, capital budgeting, taxes, cost of capital, capital structure, etc/ 
  • goal and logic 
  • estimates of value ( cash flows, projected financial statements 
  • detailed and intergrated 
  • different from business to business 
  • recognize limitations ( varies with complexity and nature of activities 
  • project the future 
  • outsider user view 
  • value of busness- market view 
  • privately hel firms for sale without known market values 
  • privately-held firms for sale without known market values 
  • private equity buyers looking at a public companies to identify potnetial targets 
  • inside view 
  • tempelate 
  • choice of horizon 
  • detailed financial from time O 
  • detailed financials at time T 
  • Toataling the present values 
  • other considerations 

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