Managing FM when new FY's results get published
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Joined: Sun Dec 02, 2012 11:28 pm

Managing FM when new FY's results get published

Postby » Mon Dec 10, 2012 7:05 pm

Suppose I've prepared a Financial Model of a company valuation based on DCF model; I've pojected five years' (say FY13 to FY17) cash flow and then calculated terminal value. Now suppose current financial year's (FY13) results get published by the company, how will I incorporate/handle this situation in my FM? I don't want to change the structure. That means now I want to project for the next five years (FY14 to FY18). Will I have to prepare another model or can I work on the same model? If yes, how?

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Joined: Fri Aug 03, 2012 11:24 am

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Postby pankaj » Wed Jan 09, 2013 10:52 am

See, using DFC you find value as of today (that is present value). so, if you have forecasted 2013 numbers in your model to get the final valuation and now when actual figures are can see how good your forecast was. To check the model you need to just put the actual numbers in the 2013 column and the model will show you the end result (provided you have created an integrated model). In case, variations are wide change your assumptions and if you want to extent the model just copy and drag to a new column.

Hope this helps!

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