A Manager's Guide to Financial Analysis

6

Forecasting and Valuation

Learning Objectives

By the end of this chapter, you should be able to:

•  Identify the possible uses of a financial forecast.

•  Describe the processes of line-by-line estimating, regression analysis and projection, and linear estimating.

•  Identify the basic forecasting equation.

•  List the techniques for calculating a robust financial forecast.

•  Define the theory behind a valuation model.

•  Describe the process for projecting future income statements and discounting future cash flows.

Looking at Ratios, Forecasting, and Integrated Financial Outcomes

As the next meeting began, Susan, who had opened the last meeting, ...